Correlation Between Siit Global and Calvert Capital
Can any of the company-specific risk be diversified away by investing in both Siit Global and Calvert Capital 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 Siit Global and Calvert Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Calvert Capital Accumulation, you can compare the effects of market volatilities on Siit Global and Calvert Capital 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 Siit Global with a short position of Calvert Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Calvert Capital.
Diversification Opportunities for Siit Global and Calvert Capital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Calvert is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Calvert Capital Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Capital Accu and Siit Global 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 Siit Global Managed are associated (or correlated) with Calvert Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Capital Accu has no effect on the direction of Siit Global i.e., Siit Global and Calvert Capital go up and down completely randomly.
Pair Corralation between Siit Global and Calvert Capital
Assuming the 90 days horizon Siit Global is expected to generate 1.24 times less return on investment than Calvert Capital. But when comparing it to its historical volatility, Siit Global Managed is 1.61 times less risky than Calvert Capital. It trades about 0.18 of its potential returns per unit of risk. Calvert Capital Accumulation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,598 in Calvert Capital Accumulation on September 3, 2024 and sell it today you would earn a total of 503.00 from holding Calvert Capital Accumulation or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Calvert Capital Accumulation
Performance |
| Timeline |
| Siit Global Managed |
| Calvert Capital Accu |
Siit Global and Calvert Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Calvert Capital
The main advantage of trading using opposite Siit Global and Calvert Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global position performs unexpectedly, Calvert Capital 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 Capital will offset losses from the drop in Calvert Capital's long position.| Siit Global vs. Ab Global Risk | Siit Global vs. Vanguard Star Fund | Siit Global vs. Morningstar Aggressive Growth | Siit Global vs. Gmo High Yield |
| Calvert Capital vs. Ab Global Risk | Calvert Capital vs. Doubleline Global Bond | Calvert Capital vs. Siit Global Managed | Calvert Capital vs. Dreyfusstandish Global Fixed |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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