Correlation Between Calvert Smallmid and Live Oak
Can any of the company-specific risk be diversified away by investing in both Calvert Smallmid and Live Oak 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 Smallmid and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Smallmid Cap A and Live Oak Health, you can compare the effects of market volatilities on Calvert Smallmid and Live Oak 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 Smallmid with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Smallmid and Live Oak.
Diversification Opportunities for Calvert Smallmid and Live Oak
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Live is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Smallmid Cap A and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health and Calvert Smallmid 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 Smallmid Cap A are associated (or correlated) with Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Calvert Smallmid i.e., Calvert Smallmid and Live Oak go up and down completely randomly.
Pair Corralation between Calvert Smallmid and Live Oak
Assuming the 90 days horizon Calvert Smallmid Cap A is expected to generate 1.26 times more return on investment than Live Oak. However, Calvert Smallmid is 1.26 times more volatile than Live Oak Health. It trades about 0.32 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.07 per unit of risk. If you would invest 2,702 in Calvert Smallmid Cap A on August 31, 2024 and sell it today you would earn a total of 233.00 from holding Calvert Smallmid Cap A or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Smallmid Cap A vs. Live Oak Health
Performance |
| Timeline |
| Calvert Smallmid Cap |
| Live Oak Health |
Calvert Smallmid and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Smallmid and Live Oak
The main advantage of trading using opposite Calvert Smallmid and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Smallmid position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Calvert Smallmid vs. Live Oak Health | Calvert Smallmid vs. Invesco Global Health | Calvert Smallmid vs. Health Biotchnology Portfolio | Calvert Smallmid vs. Highland Longshort Healthcare |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |