Correlation Between Growth Strategy and Calvert Income
Can any of the company-specific risk be diversified away by investing in both Growth Strategy and Calvert Income 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 Growth Strategy and Calvert Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Calvert Income Fund, you can compare the effects of market volatilities on Growth Strategy and Calvert Income 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 Growth Strategy with a short position of Calvert Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Calvert Income.
Diversification Opportunities for Growth Strategy and Calvert Income
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROWTH and Calvert is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Calvert Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Income and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Calvert Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Income has no effect on the direction of Growth Strategy i.e., Growth Strategy and Calvert Income go up and down completely randomly.
Pair Corralation between Growth Strategy and Calvert Income
Assuming the 90 days horizon Growth Strategy Fund is expected to generate 1.7 times more return on investment than Calvert Income. However, Growth Strategy is 1.7 times more volatile than Calvert Income Fund. It trades about 0.08 of its potential returns per unit of risk. Calvert Income Fund is currently generating about 0.06 per unit of risk. If you would invest 939.00 in Growth Strategy Fund on September 5, 2024 and sell it today you would earn a total of 270.00 from holding Growth Strategy Fund or generate 28.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. Calvert Income Fund
Performance |
| Timeline |
| Growth Strategy |
| Calvert Income |
Growth Strategy and Calvert Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Calvert Income
The main advantage of trading using opposite Growth Strategy and Calvert Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy position performs unexpectedly, Calvert Income 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 Income will offset losses from the drop in Calvert Income's long position.| Growth Strategy vs. Sei Daily Income | Growth Strategy vs. Maryland Tax Free Bond | Growth Strategy vs. Artisan High Income | Growth Strategy vs. Angel Oak Financial |
| Calvert Income vs. Templeton Emerging Markets | Calvert Income vs. T Rowe Price | Calvert Income vs. Commodities Strategy Fund | Calvert Income vs. Growth Strategy Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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