Correlation Between Calvert Global and Federated Ultrashort
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Federated Ultrashort 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 Ultrashort 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 Ultrashort Bond, you can compare the effects of market volatilities on Calvert Global and Federated Ultrashort 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 Ultrashort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Federated Ultrashort.
Diversification Opportunities for Calvert Global and Federated Ultrashort
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Federated is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Federated Ultrashort Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Ultrashort Bond 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 Ultrashort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Ultrashort Bond has no effect on the direction of Calvert Global i.e., Calvert Global and Federated Ultrashort go up and down completely randomly.
Pair Corralation between Calvert Global and Federated Ultrashort
Assuming the 90 days horizon Calvert Global Energy is expected to generate 9.14 times more return on investment than Federated Ultrashort. However, Calvert Global is 9.14 times more volatile than Federated Ultrashort Bond. It trades about 0.26 of its potential returns per unit of risk. Federated Ultrashort Bond is currently generating about 0.28 per unit of risk. If you would invest 1,152 in Calvert Global Energy on May 29, 2025 and sell it today you would earn a total of 169.00 from holding Calvert Global Energy or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Federated Ultrashort Bond
Performance |
| Timeline |
| Calvert Global Energy |
| Federated Ultrashort Bond |
Risk-Adjusted Performance
Solid
Weak | Strong |
Calvert Global and Federated Ultrashort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Federated Ultrashort
The main advantage of trading using opposite Calvert Global and Federated Ultrashort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Federated Ultrashort 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 Ultrashort will offset losses from the drop in Federated Ultrashort's long position.| Calvert Global vs. Victory Diversified Stock | Calvert Global vs. Columbia Diversified Equity | Calvert Global vs. Elfun Diversified Fund | Calvert Global vs. Delaware Limited Term Diversified |
| Federated Ultrashort vs. Ashmore Emerging Markets | Federated Ultrashort vs. Siit Emerging Markets | Federated Ultrashort vs. Alphacentric Hedged Market | Federated Ultrashort vs. Shelton Emerging Markets |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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