Correlation Between Calvert Moderate and Pro-blend(r) Moderate
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Pro-blend(r) Moderate 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 Pro-blend(r) Moderate 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 Pro Blend Moderate Term, you can compare the effects of market volatilities on Calvert Moderate and Pro-blend(r) Moderate 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 Pro-blend(r) Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Pro-blend(r) Moderate.
Diversification Opportunities for Calvert Moderate and Pro-blend(r) Moderate
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Pro-blend(r) is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Moderate 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 Pro-blend(r) Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Moderate has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Pro-blend(r) Moderate go up and down completely randomly.
Pair Corralation between Calvert Moderate and Pro-blend(r) Moderate
Assuming the 90 days horizon Calvert Moderate Allocation is expected to generate 1.52 times more return on investment than Pro-blend(r) Moderate. However, Calvert Moderate is 1.52 times more volatile than Pro Blend Moderate Term. It trades about 0.06 of its potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.09 per unit of risk. If you would invest 1,884 in Calvert Moderate Allocation on August 28, 2024 and sell it today you would earn a total of 224.00 from holding Calvert Moderate Allocation or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. Pro Blend Moderate Term
Performance |
| Timeline |
| Calvert Moderate All |
| Pro-blend(r) Moderate |
Calvert Moderate and Pro-blend(r) Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Pro-blend(r) Moderate
The main advantage of trading using opposite Calvert Moderate and Pro-blend(r) Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Pro-blend(r) Moderate 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 Pro-blend(r) Moderate will offset losses from the drop in Pro-blend(r) Moderate's long position.| Calvert Moderate vs. Fisher Small Cap | Calvert Moderate vs. Qs Small Capitalization | Calvert Moderate vs. Ancorathelen Small Mid Cap | Calvert Moderate vs. Tax Managed Mid Small |
| Pro-blend(r) Moderate vs. Manning Napier Callodine | Pro-blend(r) Moderate vs. Manning Napier Callodine | Pro-blend(r) Moderate vs. Manning Napier Callodine | Pro-blend(r) Moderate vs. Pro Blend Extended Term |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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