Correlation Between Calvert Emerging and Edge Midcap
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Edge Midcap 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 Emerging and Edge Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Emerging Markets and Edge Midcap Fund, you can compare the effects of market volatilities on Calvert Emerging and Edge Midcap 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 Emerging with a short position of Edge Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Edge Midcap.
Diversification Opportunities for Calvert Emerging and Edge Midcap
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Edge is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Edge Midcap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edge Midcap Fund and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Edge Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edge Midcap Fund has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Edge Midcap go up and down completely randomly.
Pair Corralation between Calvert Emerging and Edge Midcap
Assuming the 90 days horizon Calvert Emerging Markets is expected to generate 0.79 times more return on investment than Edge Midcap. However, Calvert Emerging Markets is 1.27 times less risky than Edge Midcap. It trades about 0.06 of its potential returns per unit of risk. Edge Midcap Fund is currently generating about 0.03 per unit of risk. If you would invest 1,005 in Calvert Emerging Markets on September 3, 2024 and sell it today you would earn a total of 185.00 from holding Calvert Emerging Markets or generate 18.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.57% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Edge Midcap Fund
Performance |
| Timeline |
| Calvert Emerging Markets |
| Edge Midcap Fund |
Calvert Emerging and Edge Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Edge Midcap
The main advantage of trading using opposite Calvert Emerging and Edge Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Edge Midcap 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 Edge Midcap will offset losses from the drop in Edge Midcap's long position.| Calvert Emerging vs. Dws Government Money | Calvert Emerging vs. Blackrock Exchange Portfolio | Calvert Emerging vs. Matson Money Equity | Calvert Emerging vs. Rbc Funds Trust |
| Edge Midcap vs. Massmutual Premier Diversified | Edge Midcap vs. Western Asset Diversified | Edge Midcap vs. Aqr Diversified Arbitrage | Edge Midcap vs. Blackrock Conservative Prprdptfinstttnl |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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