Correlation Between Western Asset and Calvert Us
Can any of the company-specific risk be diversified away by investing in both Western Asset and Calvert Us 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 Western Asset and Calvert Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset High and Calvert Large Cap, you can compare the effects of market volatilities on Western Asset and Calvert Us 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 Western Asset with a short position of Calvert Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Calvert Us.
Diversification Opportunities for Western Asset and Calvert Us
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WESTERN and Calvert is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Western Asset 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 Western Asset High are associated (or correlated) with Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Western Asset i.e., Western Asset and Calvert Us go up and down completely randomly.
Pair Corralation between Western Asset and Calvert Us
Assuming the 90 days horizon Western Asset High is expected to generate 0.25 times more return on investment than Calvert Us. However, Western Asset High is 3.95 times less risky than Calvert Us. It trades about 0.13 of its potential returns per unit of risk. Calvert Large Cap is currently generating about -0.03 per unit of risk. If you would invest 691.00 in Western Asset High on November 18, 2024 and sell it today you would earn a total of 13.00 from holding Western Asset High or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset High vs. Calvert Large Cap
Performance |
| Timeline |
| Western Asset High |
| Calvert Large Cap |
Western Asset and Calvert Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Calvert Us
The main advantage of trading using opposite Western Asset and Calvert Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Calvert Us 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 Us will offset losses from the drop in Calvert Us' long position.| Western Asset vs. Vanguard Emerging Markets | Western Asset vs. Artisan Developing World | Western Asset vs. Siit Emerging Markets | Western Asset vs. Barings Emerging Markets |
| Calvert Us vs. Calvert Developed Market | Calvert Us vs. Jhancock Diversified Macro | Calvert Us vs. Barings Emerging Markets | Calvert Us vs. Franklin Emerging Market |
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 Stocks Directory module to find actively traded stocks across global markets.
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