Correlation Between Calvert Moderate and American Independence
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and American Independence 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 American Independence 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 American Independence Kansas, you can compare the effects of market volatilities on Calvert Moderate and American Independence 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 American Independence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and American Independence.
Diversification Opportunities for Calvert Moderate and American Independence
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calvert and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and American Independence Kansas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Independence 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 American Independence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Independence has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and American Independence go up and down completely randomly.
Pair Corralation between Calvert Moderate and American Independence
If you would invest 1,866 in Calvert Moderate Allocation on September 14, 2024 and sell it today you would earn a total of 270.00 from holding Calvert Moderate Allocation or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. American Independence Kansas
Performance |
| Timeline |
| Calvert Moderate All |
| American Independence |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calvert Moderate and American Independence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and American Independence
The main advantage of trading using opposite Calvert Moderate and American Independence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, American Independence 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 American Independence will offset losses from the drop in American Independence's long position.| Calvert Moderate vs. Oil Gas Ultrasector | Calvert Moderate vs. Firsthand Alternative Energy | Calvert Moderate vs. Hennessy Bp Energy | Calvert Moderate vs. Franklin Natural Resources |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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