Correlation Between Calvert International and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Calvert International and Bond Fund 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 International and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert International Equity and Bond Fund Of, you can compare the effects of market volatilities on Calvert International and Bond Fund 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 International with a short position of Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Bond Fund.
Diversification Opportunities for Calvert International and Bond Fund
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Bond is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund and Calvert International 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 International Equity are associated (or correlated) with Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Calvert International i.e., Calvert International and Bond Fund go up and down completely randomly.
Pair Corralation between Calvert International and Bond Fund
Assuming the 90 days horizon Calvert International Equity is expected to generate 2.33 times more return on investment than Bond Fund. However, Calvert International is 2.33 times more volatile than Bond Fund Of. It trades about 0.05 of its potential returns per unit of risk. Bond Fund Of is currently generating about 0.05 per unit of risk. If you would invest 2,228 in Calvert International Equity on November 5, 2024 and sell it today you would earn a total of 285.00 from holding Calvert International Equity or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert International Equity vs. Bond Fund Of
Performance |
| Timeline |
| Calvert International |
| Bond Fund |
Calvert International and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Bond Fund
The main advantage of trading using opposite Calvert International and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund's long position.| Calvert International vs. Vanguard Growth And | Calvert International vs. Growth Portfolio Class | Calvert International vs. Mid Cap Growth | Calvert International vs. Rational Defensive Growth |
| Bond Fund vs. Rational Defensive Growth | Bond Fund vs. Morningstar Growth Etf | Bond Fund vs. T Rowe Price | Bond Fund vs. Tfa Alphagen Growth |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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