Correlation Between Calvert Global and Federated High
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Federated High 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 Global and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Federated High Yield, you can compare the effects of market volatilities on Calvert Global and Federated High 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 Global with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Federated High.
Diversification Opportunities for Calvert Global and Federated High
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Federated is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield and Calvert Global 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 Global Energy are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Calvert Global i.e., Calvert Global and Federated High go up and down completely randomly.
Pair Corralation between Calvert Global and Federated High
Assuming the 90 days horizon Calvert Global Energy is expected to generate 4.7 times more return on investment than Federated High. However, Calvert Global is 4.7 times more volatile than Federated High Yield. It trades about 0.2 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.23 per unit of risk. If you would invest 1,283 in Calvert Global Energy on May 27, 2025 and sell it today you would earn a total of 47.00 from holding Calvert Global Energy or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Federated High Yield
Performance |
| Timeline |
| Calvert Global Energy |
| Federated High Yield |
Calvert Global and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Federated High
The main advantage of trading using opposite Calvert Global and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Calvert Global vs. Western Asset Diversified | Calvert Global vs. Smallcap Fund Fka | Calvert Global vs. Hunter Small Cap | Calvert Global vs. Foundry Partners Fundamental |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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