Correlation Between Barings High and Calvert Income
Can any of the company-specific risk be diversified away by investing in both Barings High 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 Barings High and Calvert Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Calvert Income Fund, you can compare the effects of market volatilities on Barings High 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 Barings High with a short position of Calvert Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings High and Calvert Income.
Diversification Opportunities for Barings High and Calvert Income
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Calvert is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Calvert Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Income and Barings 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 Barings High Yield 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 Barings High i.e., Barings High and Calvert Income go up and down completely randomly.
Pair Corralation between Barings High and Calvert Income
Assuming the 90 days horizon Barings High Yield is expected to generate 1.02 times more return on investment than Calvert Income. However, Barings High is 1.02 times more volatile than Calvert Income Fund. It trades about 0.14 of its potential returns per unit of risk. Calvert Income Fund is currently generating about 0.14 per unit of risk. If you would invest 787.00 in Barings High Yield on June 13, 2025 and sell it today you would earn a total of 38.00 from holding Barings High Yield or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Calvert Income Fund
Performance |
| Timeline |
| Barings High Yield |
| Calvert Income |
Barings High and Calvert Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings High and Calvert Income
The main advantage of trading using opposite Barings High and Calvert Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings High 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.| Barings High vs. Blackrock Financial Institutions | Barings High vs. Gabelli Global Financial | Barings High vs. Icon Financial Fund | Barings High vs. Prudential Financial Services |
| Calvert Income vs. Prudential High Yield | Calvert Income vs. Payden High Income | Calvert Income vs. City National Rochdale | Calvert Income vs. Strategic Advisers 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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