Correlation Between Calvert High and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both Calvert High and Fisher Investments 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 Fisher Investments 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 Fisher All Foreign, you can compare the effects of market volatilities on Calvert High and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Fisher Investments.
Diversification Opportunities for Calvert High and Fisher Investments
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CALVERT and Fisher is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Fisher All Foreign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher All Foreign 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher All Foreign has no effect on the direction of Calvert High i.e., Calvert High and Fisher Investments go up and down completely randomly.
Pair Corralation between Calvert High and Fisher Investments
Assuming the 90 days horizon Calvert High Yield is expected to generate 0.18 times more return on investment than Fisher Investments. However, Calvert High Yield is 5.7 times less risky than Fisher Investments. It trades about 0.16 of its potential returns per unit of risk. Fisher All Foreign is currently generating about -0.04 per unit of risk. If you would invest 2,484 in Calvert High Yield on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Calvert High Yield or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert High Yield vs. Fisher All Foreign
Performance |
| Timeline |
| Calvert High Yield |
| Fisher All Foreign |
Calvert High and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Fisher Investments
The main advantage of trading using opposite Calvert High and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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