Correlation Between Calvert Moderate and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Calvert Moderate and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Floating Rate.
Diversification Opportunities for Calvert Moderate and Floating Rate
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Floating is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Floating Rate go up and down completely randomly.
Pair Corralation between Calvert Moderate and Floating Rate
Assuming the 90 days horizon Calvert Moderate Allocation is expected to under-perform the Floating Rate. In addition to that, Calvert Moderate is 4.8 times more volatile than Floating Rate Fund. It trades about -0.02 of its total potential returns per unit of risk. Floating Rate Fund is currently generating about 0.27 per unit of volatility. If you would invest 810.00 in Floating Rate Fund on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Floating Rate Fund or generate 0.99% 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. Floating Rate Fund
Performance |
| Timeline |
| Calvert Moderate All |
| Floating Rate |
Calvert Moderate and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Floating Rate
The main advantage of trading using opposite Calvert Moderate and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Calvert Moderate vs. American Balanced Fund | Calvert Moderate vs. American Balanced Fund | Calvert Moderate vs. HUMANA INC | Calvert Moderate vs. Aquagold International |
| Floating Rate vs. Calvert Moderate Allocation | Floating Rate vs. Wisdomtree Siegel Moderate | Floating Rate vs. Jp Morgan Smartretirement | Floating Rate vs. Saat Moderate Strategy |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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