Correlation Between Ab High and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Ab High and Calvert Emerging 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 Ab High and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Calvert Emerging Markets, you can compare the effects of market volatilities on Ab High and Calvert Emerging 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 Ab High with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Calvert Emerging.
Diversification Opportunities for Ab High and Calvert Emerging
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AGDIX and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets and Ab High 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 Ab High Income are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Ab High i.e., Ab High and Calvert Emerging go up and down completely randomly.
Pair Corralation between Ab High and Calvert Emerging
Assuming the 90 days horizon Ab High Income is expected to generate 0.27 times more return on investment than Calvert Emerging. However, Ab High Income is 3.68 times less risky than Calvert Emerging. It trades about 0.37 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 677.00 in Ab High Income on April 24, 2025 and sell it today you would earn a total of 30.00 from holding Ab High Income or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Calvert Emerging Markets
Performance |
| Timeline |
| Ab High Income |
| Calvert Emerging Markets |
Ab High and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Calvert Emerging
The main advantage of trading using opposite Ab High and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.| Ab High vs. Sp Smallcap 600 | Ab High vs. Needham Small Cap | Ab High vs. Glg Intl Small | Ab High vs. Western Asset Diversified |
| Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Short Duration | Calvert Emerging vs. Calvert International Responsible |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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