Correlation Between Calvert High and High Income
Can any of the company-specific risk be diversified away by investing in both Calvert High and High Income 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 High Income 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 High Income Fund, you can compare the effects of market volatilities on Calvert High and High Income 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 High Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and High Income.
Diversification Opportunities for Calvert High and High Income
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and High is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and High Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Income Fund 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 High Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Income Fund has no effect on the direction of Calvert High i.e., Calvert High and High Income go up and down completely randomly.
Pair Corralation between Calvert High and High Income
Assuming the 90 days horizon Calvert High is expected to generate 1.23 times less return on investment than High Income. But when comparing it to its historical volatility, Calvert High Yield is 1.18 times less risky than High Income. It trades about 0.13 of its potential returns per unit of risk. High Income Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 715.00 in High Income Fund on September 12, 2024 and sell it today you would earn a total of 160.00 from holding High Income Fund or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calvert High Yield vs. High Income Fund
Performance |
| Timeline |
| Calvert High Yield |
| High Income Fund |
Calvert High and High Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and High Income
The main advantage of trading using opposite Calvert High and High Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, High Income 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 High Income will offset losses from the drop in High Income's long position.| Calvert High vs. Locorr Dynamic Equity | Calvert High vs. Balanced Fund Retail | Calvert High vs. Us Strategic Equity | Calvert High vs. Gmo Global Equity |
| High Income vs. SCOR PK | High Income vs. Morningstar Unconstrained Allocation | High Income vs. Via Renewables | High Income vs. Bondbloxx ETF Trust |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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