Correlation Between Calvert Fund and Vanguard Global
Can any of the company-specific risk be diversified away by investing in both Calvert Fund and Vanguard Global 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 Fund and Vanguard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Fund and Vanguard Global Ex Us, you can compare the effects of market volatilities on Calvert Fund and Vanguard Global 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 Fund with a short position of Vanguard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Fund and Vanguard Global.
Diversification Opportunities for Calvert Fund and Vanguard Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Vanguard is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Fund and Vanguard Global Ex Us in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Global Ex and Calvert Fund 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 Fund are associated (or correlated) with Vanguard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Global Ex has no effect on the direction of Calvert Fund i.e., Calvert Fund and Vanguard Global go up and down completely randomly.
Pair Corralation between Calvert Fund and Vanguard Global
Assuming the 90 days horizon Calvert Fund is expected to generate 1.08 times more return on investment than Vanguard Global. However, Calvert Fund is 1.08 times more volatile than Vanguard Global Ex Us. It trades about 0.04 of its potential returns per unit of risk. Vanguard Global Ex Us is currently generating about 0.02 per unit of risk. If you would invest 778.00 in Calvert Fund on August 31, 2024 and sell it today you would earn a total of 153.00 from holding Calvert Fund or generate 19.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Fund vs. Vanguard Global Ex Us
Performance |
| Timeline |
| Calvert Fund |
| Vanguard Global Ex |
Calvert Fund and Vanguard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Fund and Vanguard Global
The main advantage of trading using opposite Calvert Fund and Vanguard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Fund position performs unexpectedly, Vanguard Global 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 Vanguard Global will offset losses from the drop in Vanguard Global's long position.| Calvert Fund vs. Vanguard Global Ex Us | Calvert Fund vs. Vanguard Global Ex Us | Calvert Fund vs. Global Real Estate | Calvert Fund vs. Global Real Estate |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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