Correlation Between NYSE Composite and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Calvert Emerging 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 Emerging 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 Emerging Markets, you can compare the effects of market volatilities on NYSE Composite and Calvert Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calvert Emerging.
Diversification Opportunities for NYSE Composite and Calvert Emerging
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Calvert is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of NYSE Composite i.e., NYSE Composite and Calvert Emerging go up and down completely randomly.
Pair Corralation between NYSE Composite and Calvert Emerging
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.7 times more return on investment than Calvert Emerging. However, NYSE Composite is 1.42 times less risky than Calvert Emerging. It trades about 0.42 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about -0.15 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Calvert Emerging Markets
Performance |
| Timeline |
NYSE Composite and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calvert Emerging Markets
Pair trading matchups for Calvert Emerging
Pair Trading with NYSE Composite and Calvert Emerging
The main advantage of trading using opposite NYSE Composite and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Calvert Emerging vs. Calvert Small Cap | Calvert Emerging vs. Calvert Large Cap | Calvert Emerging vs. Johcm International Select | Calvert Emerging vs. Calvert International Opportunities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |