Correlation Between Calvert Moderate and The Hartford
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and The Hartford 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 The Hartford 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 The Hartford Growth, you can compare the effects of market volatilities on Calvert Moderate and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and The Hartford.
Diversification Opportunities for Calvert Moderate and The Hartford
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calvert and The is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and The Hartford go up and down completely randomly.
Pair Corralation between Calvert Moderate and The Hartford
Assuming the 90 days horizon Calvert Moderate Allocation is expected to generate 0.34 times more return on investment than The Hartford. However, Calvert Moderate Allocation is 2.96 times less risky than The Hartford. It trades about 0.28 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.09 per unit of risk. If you would invest 2,028 in Calvert Moderate Allocation on November 3, 2024 and sell it today you would earn a total of 63.00 from holding Calvert Moderate Allocation or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. The Hartford Growth
Performance |
| Timeline |
| Calvert Moderate All |
| Hartford Growth |
Calvert Moderate and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and The Hartford
The main advantage of trading using opposite Calvert Moderate and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Calvert Moderate vs. Pnc Balanced Allocation | Calvert Moderate vs. Slow Capital Growth | Calvert Moderate vs. T Rowe Price | Calvert Moderate vs. Ab Global Bond |
| The Hartford vs. Rbb Fund | The Hartford vs. Mirova Global Green | The Hartford vs. Gmo Global Equity | The Hartford vs. Scharf Global Opportunity |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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