Correlation Between NYSE Composite and Calvert Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Calvert Global Energy, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calvert Global.
Diversification Opportunities for NYSE Composite and Calvert Global
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Calvert is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Calvert Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Calvert Global
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Calvert Global. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.48 times less risky than Calvert Global. The index trades about -0.05 of its potential returns per unit of risk. The Calvert Global Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,066 in Calvert Global Energy on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Calvert Global Energy or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Calvert Global Energy
Performance |
| Timeline |
NYSE Composite and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calvert Global Energy
Pair trading matchups for Calvert Global
Pair Trading with NYSE Composite and Calvert Global
The main advantage of trading using opposite NYSE Composite and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Unum Group | NYSE Composite vs. Palomar Holdings | NYSE Composite vs. Fidelity National Financial | NYSE Composite vs. ZW Data Action |
| Calvert Global vs. Shelton Emerging Markets | Calvert Global vs. Alternative Asset Allocation | Calvert Global vs. Arrow Managed Futures | Calvert Global vs. Versatile Bond Portfolio |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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