Correlation Between Champlain Mid and Calvert Small
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Calvert Small 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 Champlain Mid and Calvert Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Calvert Small Cap, you can compare the effects of market volatilities on Champlain Mid and Calvert Small 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 Champlain Mid with a short position of Calvert Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Calvert Small.
Diversification Opportunities for Champlain Mid and Calvert Small
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Calvert is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Calvert Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Small Cap and Champlain Mid 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 Champlain Mid Cap are associated (or correlated) with Calvert Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Small Cap has no effect on the direction of Champlain Mid i.e., Champlain Mid and Calvert Small go up and down completely randomly.
Pair Corralation between Champlain Mid and Calvert Small
Assuming the 90 days horizon Champlain Mid is expected to generate 1.1 times less return on investment than Calvert Small. But when comparing it to its historical volatility, Champlain Mid Cap is 1.52 times less risky than Calvert Small. It trades about 0.38 of its potential returns per unit of risk. Calvert Small Cap is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,409 in Calvert Small Cap on August 28, 2024 and sell it today you would earn a total of 299.00 from holding Calvert Small Cap or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Calvert Small Cap
Performance |
| Timeline |
| Champlain Mid Cap |
| Calvert Small Cap |
Champlain Mid and Calvert Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Calvert Small
The main advantage of trading using opposite Champlain Mid and Calvert Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Calvert Small 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 Calvert Small will offset losses from the drop in Calvert Small's long position.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Calvert Small vs. Calvert Large Cap | Calvert Small vs. Calvert Equity Portfolio | Calvert Small vs. Calvert 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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