Correlation Between Sa Mkt and Calvert High
Can any of the company-specific risk be diversified away by investing in both Sa Mkt 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 Sa Mkt and Calvert High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Mkt Fd and Calvert High Yield, you can compare the effects of market volatilities on Sa Mkt 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 Sa Mkt with a short position of Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Mkt and Calvert High.
Diversification Opportunities for Sa Mkt and Calvert High
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAMKX and Calvert is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sa Mkt Fd 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 Sa Mkt 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 Sa Mkt Fd 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 Sa Mkt i.e., Sa Mkt and Calvert High go up and down completely randomly.
Pair Corralation between Sa Mkt and Calvert High
Assuming the 90 days horizon Sa Mkt Fd is expected to generate 3.14 times more return on investment than Calvert High. However, Sa Mkt is 3.14 times more volatile than Calvert High Yield. It trades about 0.11 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.12 per unit of risk. If you would invest 2,444 in Sa Mkt Fd on September 4, 2024 and sell it today you would earn a total of 1,314 from holding Sa Mkt Fd or generate 53.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sa Mkt Fd vs. Calvert High Yield
Performance |
| Timeline |
| Sa Mkt Fd |
| Calvert High Yield |
Sa Mkt and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Mkt and Calvert High
The main advantage of trading using opposite Sa Mkt and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Mkt 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.| Sa Mkt vs. Touchstone Large Cap | Sa Mkt vs. Growth Strategy Fund | Sa Mkt vs. Rbb Fund | Sa Mkt vs. Volumetric Fund Volumetric |
| Calvert High vs. Adams Diversified Equity | Calvert High vs. Sentinel Small Pany | Calvert High vs. Legg Mason Bw | Calvert High vs. T Rowe Price |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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