Correlation Between Calvert High and Needham Aggressive
Can any of the company-specific risk be diversified away by investing in both Calvert High and Needham Aggressive 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 Needham Aggressive 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 Needham Aggressive Growth, you can compare the effects of market volatilities on Calvert High and Needham Aggressive 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 Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Needham Aggressive.
Diversification Opportunities for Calvert High and Needham Aggressive
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calvert and Needham is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth 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 Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Calvert High i.e., Calvert High and Needham Aggressive go up and down completely randomly.
Pair Corralation between Calvert High and Needham Aggressive
Assuming the 90 days horizon Calvert High is expected to generate 4.84 times less return on investment than Needham Aggressive. But when comparing it to its historical volatility, Calvert High Yield is 10.42 times less risky than Needham Aggressive. It trades about 0.13 of its potential returns per unit of risk. Needham Aggressive Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,822 in Needham Aggressive Growth on August 28, 2024 and sell it today you would earn a total of 240.00 from holding Needham Aggressive Growth or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert High Yield vs. Needham Aggressive Growth
Performance |
| Timeline |
| Calvert High Yield |
| Needham Aggressive Growth |
Calvert High and Needham Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Needham Aggressive
The main advantage of trading using opposite Calvert High and Needham Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Needham Aggressive 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 Needham Aggressive will offset losses from the drop in Needham Aggressive's long position.| Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Short Duration | Calvert High vs. Calvert International Responsible |
| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Growth Fund | Needham Aggressive vs. Baron Opportunity Fund | Needham Aggressive vs. Jacob Micro Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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