Correlation Between Calvert High and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Calvert High and Saat Defensive 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 Saat Defensive 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 Saat Defensive Strategy, you can compare the effects of market volatilities on Calvert High and Saat Defensive 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 Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Saat Defensive.
Diversification Opportunities for Calvert High and Saat Defensive
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Saat is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy 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 Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Calvert High i.e., Calvert High and Saat Defensive go up and down completely randomly.
Pair Corralation between Calvert High and Saat Defensive
Assuming the 90 days horizon Calvert High Yield is expected to generate 1.55 times more return on investment than Saat Defensive. However, Calvert High is 1.55 times more volatile than Saat Defensive Strategy. It trades about 0.22 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.21 per unit of risk. If you would invest 2,185 in Calvert High Yield on September 4, 2024 and sell it today you would earn a total of 312.00 from holding Calvert High Yield or generate 14.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert High Yield vs. Saat Defensive Strategy
Performance |
| Timeline |
| Calvert High Yield |
| Saat Defensive Strategy |
Calvert High and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Saat Defensive
The main advantage of trading using opposite Calvert High and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Saat Defensive 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 Saat Defensive will offset losses from the drop in Saat Defensive's long position.| Calvert High vs. Adams Diversified Equity | Calvert High vs. Sentinel Small Pany | Calvert High vs. Legg Mason Bw | Calvert High vs. T Rowe Price |
| Saat Defensive vs. Simt Multi Asset Accumulation | Saat Defensive vs. Saat Market Growth | Saat Defensive vs. Simt Real Return | Saat Defensive vs. Simt Small 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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