Correlation Between Leisure Fund and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Leisure Fund 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 Leisure Fund and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leisure Fund Class and Calvert Global Energy, you can compare the effects of market volatilities on Leisure Fund 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 Leisure Fund with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leisure Fund and Calvert Global.
Diversification Opportunities for Leisure Fund and Calvert Global
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leisure and Calvert is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Leisure Fund Class 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 Leisure Fund 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 Leisure Fund Class 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 Leisure Fund i.e., Leisure Fund and Calvert Global go up and down completely randomly.
Pair Corralation between Leisure Fund and Calvert Global
Assuming the 90 days horizon Leisure Fund Class is expected to generate 0.97 times more return on investment than Calvert Global. However, Leisure Fund Class is 1.03 times less risky than Calvert Global. It trades about 0.22 of its potential returns per unit of risk. Calvert Global Energy is currently generating about 0.02 per unit of risk. If you would invest 8,498 in Leisure Fund Class on September 13, 2024 and sell it today you would earn a total of 240.00 from holding Leisure Fund Class or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leisure Fund Class vs. Calvert Global Energy
Performance |
| Timeline |
| Leisure Fund Class |
| Calvert Global Energy |
Leisure Fund and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leisure Fund and Calvert Global
The main advantage of trading using opposite Leisure Fund and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leisure Fund 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.| Leisure Fund vs. Deutsche Global Inflation | Leisure Fund vs. Loomis Sayles Inflation | Leisure Fund vs. Guidepath Managed Futures | Leisure Fund vs. Ab Bond Inflation |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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