Correlation Between Balanced Fund and Calvert International
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Calvert International 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 Balanced Fund and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Calvert International Opportunities, you can compare the effects of market volatilities on Balanced Fund and Calvert International 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 Balanced Fund with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Calvert International.
Diversification Opportunities for Balanced Fund and Calvert International
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Balanced and Calvert is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Calvert International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Balanced Fund i.e., Balanced Fund and Calvert International go up and down completely randomly.
Pair Corralation between Balanced Fund and Calvert International
Assuming the 90 days horizon Balanced Fund Retail is expected to generate 0.65 times more return on investment than Calvert International. However, Balanced Fund Retail is 1.55 times less risky than Calvert International. It trades about 0.12 of its potential returns per unit of risk. Calvert International Opportunities is currently generating about 0.05 per unit of risk. If you would invest 1,177 in Balanced Fund Retail on September 12, 2024 and sell it today you would earn a total of 287.00 from holding Balanced Fund Retail or generate 24.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Calvert International Opportun
Performance |
| Timeline |
| Balanced Fund Retail |
| Calvert International |
Balanced Fund and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Calvert International
The main advantage of trading using opposite Balanced Fund and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Calvert International 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 Calvert International will offset losses from the drop in Calvert International's long position.| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
| Calvert International vs. Balanced Fund Retail | Calvert International vs. Us Strategic Equity | Calvert International vs. Touchstone International Equity | Calvert International vs. Gmo Global Equity |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |