Correlation Between Federated Kaufmann and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Calvert Global 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 Federated Kaufmann and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Fund and Calvert Global Energy, you can compare the effects of market volatilities on Federated Kaufmann and Calvert Global 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 Federated Kaufmann with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Calvert Global.
Diversification Opportunities for Federated Kaufmann and Calvert Global
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Calvert is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Fund and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Federated Kaufmann 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 Federated Kaufmann Fund are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Calvert Global go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Calvert Global
Assuming the 90 days horizon Federated Kaufmann Fund is expected to under-perform the Calvert Global. In addition to that, Federated Kaufmann is 4.5 times more volatile than Calvert Global Energy. It trades about -0.19 of its total potential returns per unit of risk. Calvert Global Energy is currently generating about -0.1 per unit of volatility. If you would invest 1,117 in Calvert Global Energy on September 12, 2024 and sell it today you would lose (18.00) from holding Calvert Global Energy or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Fund vs. Calvert Global Energy
Performance |
| Timeline |
| Federated Kaufmann |
| Calvert Global Energy |
Federated Kaufmann and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Calvert Global
The main advantage of trading using opposite Federated Kaufmann and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.| Federated Kaufmann vs. Calvert Global Energy | Federated Kaufmann vs. Invesco Energy Fund | Federated Kaufmann vs. Alpsalerian Energy Infrastructure | Federated Kaufmann vs. Jennison Natural Resources |
| Calvert Global vs. Kinetics Small Cap | Calvert Global vs. Lebenthal Lisanti Small | Calvert Global vs. Vy Columbia Small | Calvert Global vs. Champlain Small |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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