Correlation Between State Street and Calvert High
Can any of the company-specific risk be diversified away by investing in both State Street and Calvert High 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 State Street and Calvert High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Master and Calvert High Yield, you can compare the effects of market volatilities on State Street and Calvert High 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 State Street with a short position of Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Calvert High.
Diversification Opportunities for State Street and Calvert High
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between State and CALVERT is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding State Street Master and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield and State Street 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 State Street Master are associated (or correlated) with Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of State Street i.e., State Street and Calvert High go up and down completely randomly.
Pair Corralation between State Street and Calvert High
If you would invest 2,484 in Calvert High Yield on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Calvert High Yield or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
State Street Master vs. Calvert High Yield
Performance |
| Timeline |
| State Street Master |
| Calvert High Yield |
State Street and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Calvert High
The main advantage of trading using opposite State Street and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Calvert High 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 High will offset losses from the drop in Calvert High's long position.| State Street vs. Short Precious Metals | State Street vs. James Balanced Golden | State Street vs. International Investors Gold | State Street vs. International Investors Gold |
| Calvert High vs. Health Care Fund | Calvert High vs. Eventide Healthcare Life | Calvert High vs. Lord Abbett Health | Calvert High vs. Highland Longshort Healthcare |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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