Correlation Between Calvert Large and Vela International
Can any of the company-specific risk be diversified away by investing in both Calvert Large and Vela International 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 Large and Vela International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Large Cap and Vela International, you can compare the effects of market volatilities on Calvert Large and Vela International 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 Large with a short position of Vela International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and Vela International.
Diversification Opportunities for Calvert Large and Vela International
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Vela is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and Vela International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vela International and Calvert Large 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 Large Cap are associated (or correlated) with Vela International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vela International has no effect on the direction of Calvert Large i.e., Calvert Large and Vela International go up and down completely randomly.
Pair Corralation between Calvert Large and Vela International
Assuming the 90 days horizon Calvert Large Cap is expected to under-perform the Vela International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert Large Cap is 4.37 times less risky than Vela International. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Vela International is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,286 in Vela International on November 3, 2024 and sell it today you would earn a total of 35.00 from holding Vela International or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Large Cap vs. Vela International
Performance |
| Timeline |
| Calvert Large Cap |
| Vela International |
Calvert Large and Vela International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Large and Vela International
The main advantage of trading using opposite Calvert Large and Vela International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large position performs unexpectedly, Vela International 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 Vela International will offset losses from the drop in Vela International's long position.| Calvert Large vs. Blackstone Secured Lending | Calvert Large vs. Davis Financial Fund | Calvert Large vs. Financial Industries Fund | Calvert Large vs. Angel Oak Financial |
| Vela International vs. Invesco Technology Fund | Vela International vs. Science Technology Fund | Vela International vs. Specialized Technology Fund | Vela International vs. Firsthand Technology Opportunities |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |