Correlation Between Aam Select and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Aam Select and Calvert Global 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 Aam Select and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Calvert Global Energy, you can compare the effects of market volatilities on Aam Select and Calvert Global 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 Aam Select with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Calvert Global.
Diversification Opportunities for Aam Select and Calvert Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aam and Calvert is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Aam Select 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 Aam Select Income are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Aam Select i.e., Aam Select and Calvert Global go up and down completely randomly.
Pair Corralation between Aam Select and Calvert Global
Assuming the 90 days horizon Aam Select Income is expected to generate 0.36 times more return on investment than Calvert Global. However, Aam Select Income is 2.78 times less risky than Calvert Global. It trades about 0.06 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.01 per unit of risk. If you would invest 835.00 in Aam Select Income on December 1, 2024 and sell it today you would earn a total of 90.00 from holding Aam Select Income or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aam Select Income vs. Calvert Global Energy
Performance |
| Timeline |
| Aam Select Income |
| Calvert Global Energy |
Aam Select and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Calvert Global
The main advantage of trading using opposite Aam Select and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Aam Select vs. The Hartford Inflation | Aam Select vs. Credit Suisse Multialternative | Aam Select vs. Ab Bond Inflation | Aam Select vs. Ab Bond Inflation |
| Calvert Global vs. Rational Defensive Growth | Calvert Global vs. The Hartford Growth | Calvert Global vs. Oklahoma College Savings | Calvert Global vs. Multimanager Lifestyle Growth |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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