Correlation Between Calvert Global and Short Oil
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Short Oil 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 Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Calvert Global and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Short Oil.
Diversification Opportunities for Calvert Global and Short Oil
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calvert and Short is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Calvert Global i.e., Calvert Global and Short Oil go up and down completely randomly.
Pair Corralation between Calvert Global and Short Oil
Assuming the 90 days horizon Calvert Global Energy is expected to generate 0.92 times more return on investment than Short Oil. However, Calvert Global Energy is 1.09 times less risky than Short Oil. It trades about -0.18 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.37 per unit of risk. If you would invest 1,144 in Calvert Global Energy on August 28, 2024 and sell it today you would lose (45.00) from holding Calvert Global Energy or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert Global Energy vs. Short Oil Gas
Performance |
| Timeline |
| Calvert Global Energy |
| Short Oil Gas |
Calvert Global and Short Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Short Oil
The main advantage of trading using opposite Calvert Global and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.| Calvert Global vs. Cref Money Market | Calvert Global vs. Institutional Fiduciary Trust | Calvert Global vs. Plan Investment | Calvert Global vs. Franklin Government Money |
| Short Oil vs. Short Real Estate | Short Oil vs. Short Real Estate | Short Oil vs. Ultrashort Mid Cap Profund | Short Oil vs. Ultrashort Mid Cap Profund |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |