Correlation Between Calvert Equity and Calvert Floating-rate
Can any of the company-specific risk be diversified away by investing in both Calvert Equity and Calvert Floating-rate 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 Equity and Calvert Floating-rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Equity Fund and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Calvert Equity and Calvert Floating-rate 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 Equity with a short position of Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Equity and Calvert Floating-rate.
Diversification Opportunities for Calvert Equity and Calvert Floating-rate
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Fund and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate and Calvert Equity 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 Equity Fund are associated (or correlated) with Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Calvert Equity i.e., Calvert Equity and Calvert Floating-rate go up and down completely randomly.
Pair Corralation between Calvert Equity and Calvert Floating-rate
Assuming the 90 days horizon Calvert Equity Fund is expected to generate 5.7 times more return on investment than Calvert Floating-rate. However, Calvert Equity is 5.7 times more volatile than Calvert Floating Rate Advantage. It trades about 0.03 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.11 per unit of risk. If you would invest 9,332 in Calvert Equity Fund on May 28, 2025 and sell it today you would earn a total of 532.00 from holding Calvert Equity Fund or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Equity Fund vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Calvert Equity |
| Calvert Floating Rate |
Calvert Equity and Calvert Floating-rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Equity and Calvert Floating-rate
The main advantage of trading using opposite Calvert Equity and Calvert Floating-rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Equity position performs unexpectedly, Calvert Floating-rate 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 Floating-rate will offset losses from the drop in Calvert Floating-rate's long position.| Calvert Equity vs. Victory Sycamore Small | Calvert Equity vs. Brown Advisory Sustainable | Calvert Equity vs. Victory Sycamore Established | Calvert Equity vs. Calvert Equity Portfolio |
| Calvert Floating-rate vs. Lord Abbett Diversified | Calvert Floating-rate vs. Ashmore Emerging Markets | Calvert Floating-rate vs. Sa Emerging Markets | Calvert Floating-rate vs. Pnc 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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