Correlation Between Catalyst/smh High and Calvert Green
Can any of the company-specific risk be diversified away by investing in both Catalyst/smh High and Calvert Green 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 Catalyst/smh High and Calvert Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystsmh High Income and Calvert Green Bond, you can compare the effects of market volatilities on Catalyst/smh High and Calvert Green 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 Catalyst/smh High with a short position of Calvert Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/smh High and Calvert Green.
Diversification Opportunities for Catalyst/smh High and Calvert Green
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst/smh and Calvert is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh High Income and Calvert Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Green Bond and Catalyst/smh 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 Catalystsmh High Income are associated (or correlated) with Calvert Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Green Bond has no effect on the direction of Catalyst/smh High i.e., Catalyst/smh High and Calvert Green go up and down completely randomly.
Pair Corralation between Catalyst/smh High and Calvert Green
Assuming the 90 days horizon Catalystsmh High Income is expected to generate 1.45 times more return on investment than Calvert Green. However, Catalyst/smh High is 1.45 times more volatile than Calvert Green Bond. It trades about -0.26 of its potential returns per unit of risk. Calvert Green Bond is currently generating about -0.47 per unit of risk. If you would invest 377.00 in Catalystsmh High Income on October 9, 2024 and sell it today you would lose (6.00) from holding Catalystsmh High Income or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystsmh High Income vs. Calvert Green Bond
Performance |
| Timeline |
| Catalystsmh High Income |
| Calvert Green Bond |
Catalyst/smh High and Calvert Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/smh High and Calvert Green
The main advantage of trading using opposite Catalyst/smh High and Calvert Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/smh High position performs unexpectedly, Calvert Green 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 Green will offset losses from the drop in Calvert Green's long position.| Catalyst/smh High vs. Ab Small Cap | Catalyst/smh High vs. Tax Managed Large Cap | Catalyst/smh High vs. Rationalpier 88 Convertible | Catalyst/smh High vs. Issachar Fund Class |
| Calvert Green vs. Calvert Developed Market | Calvert Green vs. Calvert Developed Market | Calvert Green vs. Calvert Short Duration | Calvert Green vs. Calvert International Responsible |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |