Correlation Between Calvert Moderate and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Hartford Growth 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 Hartford Growth 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 Hartford Growth 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 Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Hartford Growth.
Diversification Opportunities for Calvert Moderate and Hartford Growth
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calvert and Hartford is 0.18. 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 Hartford Growth. 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 Hartford Growth go up and down completely randomly.
Pair Corralation between Calvert Moderate and Hartford Growth
Assuming the 90 days horizon Calvert Moderate Allocation is expected to generate 0.55 times more return on investment than Hartford Growth. However, Calvert Moderate Allocation is 1.82 times less risky than Hartford Growth. It trades about 0.08 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.01 per unit of risk. If you would invest 2,059 in Calvert Moderate Allocation on October 24, 2024 and sell it today you would earn a total of 18.00 from holding Calvert Moderate Allocation or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. The Hartford Growth
Performance |
| Timeline |
| Calvert Moderate All |
| Hartford Growth |
Calvert Moderate and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Hartford Growth
The main advantage of trading using opposite Calvert Moderate and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Hartford Growth 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 Hartford Growth will offset losses from the drop in Hartford Growth's long position.| Calvert Moderate vs. Blackrock Pa Muni | Calvert Moderate vs. Lord Abbett Intermediate | Calvert Moderate vs. Bbh Intermediate Municipal | Calvert Moderate vs. Inverse Government Long |
| Hartford Growth vs. Small Cap Stock | Hartford Growth vs. T Rowe Price | Hartford Growth vs. The Texas Fund | Hartford Growth vs. Commodities Strategy Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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