Correlation Between Commodities Strategy and Calvert Income
Can any of the company-specific risk be diversified away by investing in both Commodities 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 Commodities 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 Commodities Strategy Fund and Calvert Income Fund, you can compare the effects of market volatilities on Commodities 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 Commodities Strategy with a short position of Calvert Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Calvert Income.
Diversification Opportunities for Commodities Strategy and Calvert Income
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Commodities and Calvert is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Commodities 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 Commodities 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 Commodities 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 Commodities Strategy i.e., Commodities Strategy and Calvert Income go up and down completely randomly.
Pair Corralation between Commodities Strategy and Calvert Income
Assuming the 90 days horizon Commodities Strategy is expected to generate 3.13 times less return on investment than Calvert Income. In addition to that, Commodities Strategy is 3.01 times more volatile than Calvert Income Fund. It trades about 0.01 of its total potential returns per unit of risk. Calvert Income Fund is currently generating about 0.07 per unit of volatility. If you would invest 1,325 in Calvert Income Fund on September 13, 2024 and sell it today you would earn a total of 193.00 from holding Calvert Income Fund or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Commodities Strategy Fund vs. Calvert Income Fund
Performance |
| Timeline |
| Commodities Strategy |
| Calvert Income |
Commodities Strategy and Calvert Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodities Strategy and Calvert Income
The main advantage of trading using opposite Commodities Strategy and Calvert Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities 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.| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
| Calvert Income vs. Calvert Developed Market | Calvert Income vs. Calvert Developed Market | Calvert Income vs. Calvert Short Duration | Calvert Income vs. Calvert International Responsible |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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