Correlation Between Access Flex and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Access Flex and Calvert Short 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 Access Flex and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Flex High and Calvert Short Duration, you can compare the effects of market volatilities on Access Flex and Calvert Short 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 Access Flex with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Flex and Calvert Short.
Diversification Opportunities for Access Flex and Calvert Short
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Access and Calvert is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Access Flex High and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Access Flex 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 Access Flex High are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Access Flex i.e., Access Flex and Calvert Short go up and down completely randomly.
Pair Corralation between Access Flex and Calvert Short
Assuming the 90 days horizon Access Flex High is expected to generate 2.64 times more return on investment than Calvert Short. However, Access Flex is 2.64 times more volatile than Calvert Short Duration. It trades about 0.12 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.14 per unit of risk. If you would invest 2,997 in Access Flex High on November 7, 2024 and sell it today you would earn a total of 19.00 from holding Access Flex High or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Access Flex High vs. Calvert Short Duration
Performance |
| Timeline |
| Access Flex High |
| Calvert Short Duration |
Access Flex and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Flex and Calvert Short
The main advantage of trading using opposite Access Flex and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Flex position performs unexpectedly, Calvert Short 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 Short will offset losses from the drop in Calvert Short's long position.| Access Flex vs. Gugg Actv Invmt | Access Flex vs. The Hartford High | Access Flex vs. Pace High Yield | Access Flex vs. Massmutual Premier High |
| Calvert Short vs. Voya Target Retirement | Calvert Short vs. Calvert Moderate Allocation | Calvert Short vs. Putnam Retirement Advantage | Calvert Short vs. Transamerica Cleartrack Retirement |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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