Correlation Between Calvert Moderate and Value Fund
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Value Fund 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 Value Fund 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 Value Fund Value, you can compare the effects of market volatilities on Calvert Moderate and Value Fund 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 Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Value Fund.
Diversification Opportunities for Calvert Moderate and Value Fund
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and VALUE is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Value Fund Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Value 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 Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Value has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Value Fund go up and down completely randomly.
Pair Corralation between Calvert Moderate and Value Fund
Assuming the 90 days horizon Calvert Moderate is expected to generate 2.08 times less return on investment than Value Fund. But when comparing it to its historical volatility, Calvert Moderate Allocation is 2.07 times less risky than Value Fund. It trades about 0.35 of its potential returns per unit of risk. Value Fund Value is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,118 in Value Fund Value on September 3, 2024 and sell it today you would earn a total of 133.00 from holding Value Fund Value or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. Value Fund Value
Performance |
| Timeline |
| Calvert Moderate All |
| Value Fund Value |
Calvert Moderate and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Value Fund
The main advantage of trading using opposite Calvert Moderate and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.| Calvert Moderate vs. Us Vector Equity | Calvert Moderate vs. Multimedia Portfolio Multimedia | Calvert Moderate vs. The Fixed Income | Calvert Moderate vs. Ab Select Equity |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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