Correlation Between Calvert Balanced and American Funds
Can any of the company-specific risk be diversified away by investing in both Calvert Balanced and American Funds 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 Balanced and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Balanced Portfolio and American Funds American, you can compare the effects of market volatilities on Calvert Balanced and American Funds 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 Balanced with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Balanced and American Funds.
Diversification Opportunities for Calvert Balanced and American Funds
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and American is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Balanced Portfolio and American Funds American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds American and Calvert Balanced 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 Balanced Portfolio are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds American has no effect on the direction of Calvert Balanced i.e., Calvert Balanced and American Funds go up and down completely randomly.
Pair Corralation between Calvert Balanced and American Funds
Assuming the 90 days horizon Calvert Balanced Portfolio is expected to generate 1.13 times more return on investment than American Funds. However, Calvert Balanced is 1.13 times more volatile than American Funds American. It trades about 0.13 of its potential returns per unit of risk. American Funds American is currently generating about 0.15 per unit of risk. If you would invest 4,328 in Calvert Balanced Portfolio on September 12, 2024 and sell it today you would earn a total of 177.00 from holding Calvert Balanced Portfolio or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Balanced Portfolio vs. American Funds American
Performance |
| Timeline |
| Calvert Balanced Por |
| American Funds American |
Calvert Balanced and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Balanced and American Funds
The main advantage of trading using opposite Calvert Balanced and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Balanced position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Calvert Balanced vs. Strategic Allocation Servative | Calvert Balanced vs. Strategic Allocation Aggressive | Calvert Balanced vs. Value Fund Investor | Calvert Balanced vs. International Growth Fund |
| American Funds vs. Scout Small Cap | American Funds vs. Lebenthal Lisanti Small | American Funds vs. Pace Smallmedium Value | American Funds vs. Glg Intl Small |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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