Correlation Between Applied Finance and Calvert Income
Can any of the company-specific risk be diversified away by investing in both Applied Finance 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 Applied Finance and Calvert Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Finance Explorer and Calvert Income Fund, you can compare the effects of market volatilities on Applied Finance 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 Applied Finance with a short position of Calvert Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Calvert Income.
Diversification Opportunities for Applied Finance and Calvert Income
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Applied and Calvert is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and Calvert Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Income and Applied Finance 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 Applied Finance Explorer 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 Applied Finance i.e., Applied Finance and Calvert Income go up and down completely randomly.
Pair Corralation between Applied Finance and Calvert Income
Assuming the 90 days horizon Applied Finance Explorer is expected to generate 5.42 times more return on investment than Calvert Income. However, Applied Finance is 5.42 times more volatile than Calvert Income Fund. It trades about 0.06 of its potential returns per unit of risk. Calvert Income Fund is currently generating about 0.1 per unit of risk. If you would invest 2,154 in Applied Finance Explorer on May 27, 2025 and sell it today you would earn a total of 221.00 from holding Applied Finance Explorer or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Finance Explorer vs. Calvert Income Fund
Performance |
| Timeline |
| Applied Finance Explorer |
| Calvert Income |
Applied Finance and Calvert Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Finance and Calvert Income
The main advantage of trading using opposite Applied Finance and Calvert Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Finance 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.| Applied Finance vs. Thrivent Small Cap | Applied Finance vs. Applied Finance Select | Applied Finance vs. Parnassus Endeavor Fund | Applied Finance vs. Queens Road Small |
| Calvert Income vs. Dana Large Cap | Calvert Income vs. Large Cap Growth Profund | Calvert Income vs. Vest Large Cap | Calvert Income vs. Dreyfus Large Cap |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |