Correlation Between Calvert International and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Calvert International and Americafirst Large 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 Americafirst Large 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 Americafirst Large Cap, you can compare the effects of market volatilities on Calvert International and Americafirst Large 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 Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Americafirst Large.
Diversification Opportunities for Calvert International and Americafirst Large
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and Americafirst is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap 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 Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Calvert International i.e., Calvert International and Americafirst Large go up and down completely randomly.
Pair Corralation between Calvert International and Americafirst Large
Assuming the 90 days horizon Calvert International Equity is expected to under-perform the Americafirst Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert International Equity is 1.23 times less risky than Americafirst Large. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Americafirst Large Cap is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,343 in Americafirst Large Cap on September 5, 2024 and sell it today you would earn a total of 122.00 from holding Americafirst Large Cap or generate 9.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert International Equity vs. Americafirst Large Cap
Performance |
| Timeline |
| Calvert International |
| Americafirst Large Cap |
Calvert International and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Americafirst Large
The main advantage of trading using opposite Calvert International and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Calvert International vs. Americafirst Large Cap | Calvert International vs. Dodge Cox Stock | Calvert International vs. Touchstone Large Cap | Calvert International vs. Fundamental Large Cap |
| Americafirst Large vs. American Mutual Fund | Americafirst Large vs. Aqr Large Cap | Americafirst Large vs. M Large Cap | Americafirst Large vs. Vela Large Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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