Correlation Between Calvert Small and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Calvert Small and Amg Gwk 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 Small and Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Small Cap and Amg Gwk Small, you can compare the effects of market volatilities on Calvert Small and Amg Gwk 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 Small with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Small and Amg Gwk.
Diversification Opportunities for Calvert Small and Amg Gwk
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Amg is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Small Cap and Amg Gwk Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Small and Calvert Small 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 Small Cap are associated (or correlated) with Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Small has no effect on the direction of Calvert Small i.e., Calvert Small and Amg Gwk go up and down completely randomly.
Pair Corralation between Calvert Small and Amg Gwk
Assuming the 90 days horizon Calvert Small Cap is expected to under-perform the Amg Gwk. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert Small Cap is 1.18 times less risky than Amg Gwk. The mutual fund trades about -0.22 of its potential returns per unit of risk. The Amg Gwk Small is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 3,346 in Amg Gwk Small on November 28, 2024 and sell it today you would lose (112.00) from holding Amg Gwk Small or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Small Cap vs. Amg Gwk Small
Performance |
| Timeline |
| Calvert Small Cap |
| Amg Gwk Small |
Calvert Small and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Small and Amg Gwk
The main advantage of trading using opposite Calvert Small and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Small position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.| Calvert Small vs. Calvert Small Cap | Calvert Small vs. Calvert Large Cap | Calvert Small vs. Calvert Small Cap | Calvert Small vs. Calvert Equity Portfolio |
| Amg Gwk vs. Amg Gwk Small | Amg Gwk vs. Aberdeen Small Cap | Amg Gwk vs. Poplar Forest Partners | Amg Gwk vs. Calvert Small Cap |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |