Correlation Between Calvert Conservative and Dunham Enhanced
Can any of the company-specific risk be diversified away by investing in both Calvert Conservative and Dunham Enhanced 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 Calvert Conservative and Dunham Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Conservative Allocation and Dunham Enhanced Market, you can compare the effects of market volatilities on Calvert Conservative and Dunham Enhanced 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 Calvert Conservative with a short position of Dunham Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Conservative and Dunham Enhanced.
Diversification Opportunities for Calvert Conservative and Dunham Enhanced
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Dunham is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Conservative Allocatio and Dunham Enhanced Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Enhanced Market and Calvert Conservative 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 Calvert Conservative Allocation are associated (or correlated) with Dunham Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Enhanced Market has no effect on the direction of Calvert Conservative i.e., Calvert Conservative and Dunham Enhanced go up and down completely randomly.
Pair Corralation between Calvert Conservative and Dunham Enhanced
Assuming the 90 days horizon Calvert Conservative is expected to generate 2.24 times less return on investment than Dunham Enhanced. But when comparing it to its historical volatility, Calvert Conservative Allocation is 2.29 times less risky than Dunham Enhanced. It trades about 0.24 of its potential returns per unit of risk. Dunham Enhanced Market is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,427 in Dunham Enhanced Market on May 31, 2025 and sell it today you would earn a total of 141.00 from holding Dunham Enhanced Market or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Conservative Allocatio vs. Dunham Enhanced Market
Performance |
| Timeline |
| Calvert Conservative |
| Dunham Enhanced Market |
Calvert Conservative and Dunham Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Conservative and Dunham Enhanced
The main advantage of trading using opposite Calvert Conservative and Dunham Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Conservative position performs unexpectedly, Dunham Enhanced 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 Dunham Enhanced will offset losses from the drop in Dunham Enhanced's long position.| Calvert Conservative vs. Rational Dividend Capture | Calvert Conservative vs. Abr 7525 Volatility | Calvert Conservative vs. Aam Select Income | Calvert Conservative vs. Rbc Microcap Value |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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