Correlation Between Calvert Bond and Calvert International
Can any of the company-specific risk be diversified away by investing in both Calvert Bond and Calvert 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 Bond and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Bond Portfolio and Calvert International Equity, you can compare the effects of market volatilities on Calvert Bond and Calvert 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 Bond with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Bond and Calvert International.
Diversification Opportunities for Calvert Bond and Calvert International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Calvert Bond 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 Bond Portfolio are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Calvert Bond i.e., Calvert Bond and Calvert International go up and down completely randomly.
Pair Corralation between Calvert Bond and Calvert International
Assuming the 90 days horizon Calvert Bond Portfolio is expected to generate 0.35 times more return on investment than Calvert International. However, Calvert Bond Portfolio is 2.83 times less risky than Calvert International. It trades about 0.13 of its potential returns per unit of risk. Calvert International Equity is currently generating about -0.02 per unit of risk. If you would invest 1,447 in Calvert Bond Portfolio on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Calvert Bond Portfolio or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Bond Portfolio vs. Calvert International Equity
Performance |
| Timeline |
| Calvert Bond Portfolio |
| Calvert International |
Calvert Bond and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Bond and Calvert International
The main advantage of trading using opposite Calvert Bond and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Bond position performs unexpectedly, Calvert 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 Calvert International will offset losses from the drop in Calvert International's long position.| Calvert Bond vs. Pace Smallmedium Value | Calvert Bond vs. Victory Rs Partners | Calvert Bond vs. Omni Small Cap Value | Calvert Bond vs. Applied Finance Explorer |
| Calvert International vs. Fa 529 Aggressive | Calvert International vs. Pace High Yield | Calvert International vs. Ppm High Yield | Calvert International vs. Needham Aggressive 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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