Correlation Between Calvert Emerging and Pro-blend(r) Moderate
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Pro-blend(r) Moderate 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 Emerging and Pro-blend(r) Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Emerging Markets and Pro Blend Moderate Term, you can compare the effects of market volatilities on Calvert Emerging and Pro-blend(r) Moderate 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 Emerging with a short position of Pro-blend(r) Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Pro-blend(r) Moderate.
Diversification Opportunities for Calvert Emerging and Pro-blend(r) Moderate
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Pro-blend(r) is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Moderate and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Pro-blend(r) Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Moderate has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Pro-blend(r) Moderate go up and down completely randomly.
Pair Corralation between Calvert Emerging and Pro-blend(r) Moderate
Assuming the 90 days horizon Calvert Emerging Markets is expected to under-perform the Pro-blend(r) Moderate. In addition to that, Calvert Emerging is 2.38 times more volatile than Pro Blend Moderate Term. It trades about -0.14 of its total potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.2 per unit of volatility. If you would invest 1,469 in Pro Blend Moderate Term on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Pro Blend Moderate Term or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Pro Blend Moderate Term
Performance |
| Timeline |
| Calvert Emerging Markets |
| Pro-blend(r) Moderate |
Calvert Emerging and Pro-blend(r) Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Pro-blend(r) Moderate
The main advantage of trading using opposite Calvert Emerging and Pro-blend(r) Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Pro-blend(r) Moderate 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 Pro-blend(r) Moderate will offset losses from the drop in Pro-blend(r) Moderate's long position.| Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Short Duration | Calvert Emerging vs. Calvert Short Duration | Calvert Emerging vs. Calvert Short Duration |
| Pro-blend(r) Moderate vs. Pro Blend Servative Term | Pro-blend(r) Moderate vs. Pro Blend Extended Term | Pro-blend(r) Moderate vs. Pro Blend Maximum Term | Pro-blend(r) Moderate vs. Greenspring Fund Retail |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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