Correlation Between Barings Active and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Barings Active and Calvert Short 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 Barings Active and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Calvert Short Duration, you can compare the effects of market volatilities on Barings Active and Calvert Short 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 Barings Active with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Calvert Short.
Diversification Opportunities for Barings Active and Calvert Short
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Barings and Calvert is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Barings Active 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 Barings Active Short are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Barings Active i.e., Barings Active and Calvert Short go up and down completely randomly.
Pair Corralation between Barings Active and Calvert Short
Assuming the 90 days horizon Barings Active Short is expected to generate 1.02 times more return on investment than Calvert Short. However, Barings Active is 1.02 times more volatile than Calvert Short Duration. It trades about 0.27 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.24 per unit of risk. If you would invest 920.00 in Barings Active Short on May 27, 2025 and sell it today you would earn a total of 20.00 from holding Barings Active Short or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Calvert Short Duration
Performance |
| Timeline |
| Barings Active Short |
| Calvert Short Duration |
Barings Active and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Calvert Short
The main advantage of trading using opposite Barings Active and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Calvert Short 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 Short will offset losses from the drop in Calvert Short's long position.| Barings Active vs. Fm Investments Large | Barings Active vs. Tactical Multi Purpose Fund | Barings Active vs. Old Westbury Large | Barings Active vs. Guidemark Large Cap |
| Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Income Fund | Calvert Short vs. Calvert Long Term Income |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |