Correlation Between Calvert High and Comstock Capital
Can any of the company-specific risk be diversified away by investing in both Calvert High and Comstock Capital 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 High and Comstock Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert High Yield and Comstock Capital Value, you can compare the effects of market volatilities on Calvert High and Comstock Capital 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 High with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Comstock Capital.
Diversification Opportunities for Calvert High and Comstock Capital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CALVERT and Comstock is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Comstock Capital Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Capital Value and Calvert High 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 High Yield are associated (or correlated) with Comstock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Capital Value has no effect on the direction of Calvert High i.e., Calvert High and Comstock Capital go up and down completely randomly.
Pair Corralation between Calvert High and Comstock Capital
Assuming the 90 days horizon Calvert High is expected to generate 1.22 times less return on investment than Comstock Capital. But when comparing it to its historical volatility, Calvert High Yield is 2.13 times less risky than Comstock Capital. It trades about 0.23 of its potential returns per unit of risk. Comstock Capital Value is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Comstock Capital Value on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Comstock Capital Value or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Calvert High Yield vs. Comstock Capital Value
Performance |
| Timeline |
| Calvert High Yield |
| Comstock Capital Value |
Calvert High and Comstock Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Comstock Capital
The main advantage of trading using opposite Calvert High and Comstock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Comstock Capital 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 Comstock Capital will offset losses from the drop in Comstock Capital's long position.| Calvert High vs. Health Care Fund | Calvert High vs. Eventide Healthcare Life | Calvert High vs. Lord Abbett Health | Calvert High vs. Highland Longshort Healthcare |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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