Correlation Between Calvert High and Virtus Kar
Can any of the company-specific risk be diversified away by investing in both Calvert High and Virtus Kar 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 Virtus Kar 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 Virtus Kar Mid Cap, you can compare the effects of market volatilities on Calvert High and Virtus Kar 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 Virtus Kar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Virtus Kar.
Diversification Opportunities for Calvert High and Virtus Kar
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Virtus is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Virtus Kar Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Kar Mid 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 Virtus Kar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Kar Mid has no effect on the direction of Calvert High i.e., Calvert High and Virtus Kar go up and down completely randomly.
Pair Corralation between Calvert High and Virtus Kar
Assuming the 90 days horizon Calvert High Yield is expected to generate 0.17 times more return on investment than Virtus Kar. However, Calvert High Yield is 5.79 times less risky than Virtus Kar. It trades about 0.13 of its potential returns per unit of risk. Virtus Kar Mid Cap is currently generating about -0.33 per unit of risk. If you would invest 2,480 in Calvert High Yield on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Calvert High Yield or generate 0.4% 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. Virtus Kar Mid Cap
Performance |
| Timeline |
| Calvert High Yield |
| Virtus Kar Mid |
Calvert High and Virtus Kar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Virtus Kar
The main advantage of trading using opposite Calvert High and Virtus Kar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Virtus Kar 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 Virtus Kar will offset losses from the drop in Virtus Kar's long position.| Calvert High vs. John Hancock Financial | Calvert High vs. 1919 Financial Services | Calvert High vs. Fidelity Advisor Financial | Calvert High vs. Angel Oak Financial |
| Virtus Kar vs. Prudential Government Money | Virtus Kar vs. Franklin Adjustable Government | Virtus Kar vs. Us Government Securities | Virtus Kar vs. Us Government Securities |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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