Correlation Between Huber Capital and Calvert Equity
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Calvert Equity 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 Huber Capital and Calvert Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Equity and Calvert Equity Portfolio, you can compare the effects of market volatilities on Huber Capital and Calvert Equity 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 Huber Capital with a short position of Calvert Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Calvert Equity.
Diversification Opportunities for Huber Capital and Calvert Equity
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huber and Calvert is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Equity and Calvert Equity Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Equity Portfolio and Huber Capital 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 Huber Capital Equity are associated (or correlated) with Calvert Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Equity Portfolio has no effect on the direction of Huber Capital i.e., Huber Capital and Calvert Equity go up and down completely randomly.
Pair Corralation between Huber Capital and Calvert Equity
Assuming the 90 days horizon Huber Capital Equity is expected to generate 0.81 times more return on investment than Calvert Equity. However, Huber Capital Equity is 1.23 times less risky than Calvert Equity. It trades about 0.04 of its potential returns per unit of risk. Calvert Equity Portfolio is currently generating about -0.02 per unit of risk. If you would invest 2,553 in Huber Capital Equity on January 10, 2025 and sell it today you would earn a total of 376.00 from holding Huber Capital Equity or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Equity vs. Calvert Equity Portfolio
Performance |
| Timeline |
| Huber Capital Equity |
| Calvert Equity Portfolio |
Huber Capital and Calvert Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Calvert Equity
The main advantage of trading using opposite Huber Capital and Calvert Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Calvert Equity 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 Equity will offset losses from the drop in Calvert Equity's long position.| Huber Capital vs. Huber Capital Diversified | Huber Capital vs. Huber Capital Diversified | Huber Capital vs. Huber Capital Equity | Huber Capital vs. Huber Capital Mid |
| Calvert Equity vs. Calvert Developed Market | Calvert Equity vs. Calvert Developed Market | Calvert Equity vs. Calvert Short Duration | Calvert Equity 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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