Correlation Between Calvert Moderate and First Eagle
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and First Eagle 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 Moderate and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Moderate Allocation and First Eagle Gold, you can compare the effects of market volatilities on Calvert Moderate and First Eagle 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 Moderate with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and First Eagle.
Diversification Opportunities for Calvert Moderate and First Eagle
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calvert and First is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold and Calvert Moderate 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 Moderate Allocation are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and First Eagle go up and down completely randomly.
Pair Corralation between Calvert Moderate and First Eagle
Assuming the 90 days horizon Calvert Moderate is expected to generate 1.3 times less return on investment than First Eagle. But when comparing it to its historical volatility, Calvert Moderate Allocation is 2.56 times less risky than First Eagle. It trades about 0.07 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,343 in First Eagle Gold on September 12, 2024 and sell it today you would earn a total of 146.00 from holding First Eagle Gold or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.35% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. First Eagle Gold
Performance |
| Timeline |
| Calvert Moderate All |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calvert Moderate and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and First Eagle
The main advantage of trading using opposite Calvert Moderate and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Calvert Moderate vs. Strategic Allocation Servative | Calvert Moderate vs. Strategic Allocation Aggressive | Calvert Moderate vs. Value Fund Investor | Calvert Moderate vs. International Growth Fund |
| First Eagle vs. Pro Blend Moderate Term | First Eagle vs. Calvert Moderate Allocation | First Eagle vs. Deutsche Multi Asset Moderate | First Eagle vs. Jpmorgan Smartretirement 2035 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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