Correlation Between Calvert Global and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Mainstay Moderate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Calvert Global and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Calvert Global and Mainstay Moderate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Calvert Global with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Mainstay Moderate.
Diversification Opportunities for Calvert Global and Mainstay Moderate
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calvert and MAINSTAY is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Calvert Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Calvert Global Energy are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Calvert Global i.e., Calvert Global and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Calvert Global and Mainstay Moderate
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Mainstay Moderate. In addition to that, Calvert Global is 2.11 times more volatile than Mainstay Moderate Allocation. It trades about -0.06 of its total potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.39 per unit of volatility. If you would invest 1,407 in Mainstay Moderate Allocation on September 4, 2024 and sell it today you would earn a total of 52.00 from holding Mainstay Moderate Allocation or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calvert Global Energy vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Calvert Global Energy |
| Mainstay Moderate |
Calvert Global and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Mainstay Moderate
The main advantage of trading using opposite Calvert Global and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Mainstay Moderate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay Moderate will offset losses from the drop in Mainstay Moderate's long position.| Calvert Global vs. Ashmore Emerging Markets | Calvert Global vs. Wells Fargo Funds | Calvert Global vs. Lord Abbett Emerging | Calvert Global vs. Elfun Government Money |
| Mainstay Moderate vs. Falcon Focus Scv | Mainstay Moderate vs. Western Asset Municipal | Mainstay Moderate vs. Iaadx | Mainstay Moderate vs. Sei Daily Income |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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