Correlation Between Calvert Floating-rate and Calvert Moderate
Can any of the company-specific risk be diversified away by investing in both Calvert Floating-rate and Calvert Moderate 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 Floating-rate and Calvert Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Floating Rate Advantage and Calvert Moderate Allocation, you can compare the effects of market volatilities on Calvert Floating-rate and Calvert Moderate 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 Floating-rate with a short position of Calvert Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Floating-rate and Calvert Moderate.
Diversification Opportunities for Calvert Floating-rate and Calvert Moderate
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Calvert is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Floating Rate Advantag and Calvert Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Moderate All and Calvert Floating-rate 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 Floating Rate Advantage are associated (or correlated) with Calvert Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Moderate All has no effect on the direction of Calvert Floating-rate i.e., Calvert Floating-rate and Calvert Moderate go up and down completely randomly.
Pair Corralation between Calvert Floating-rate and Calvert Moderate
Assuming the 90 days horizon Calvert Floating-rate is expected to generate 3.09 times less return on investment than Calvert Moderate. But when comparing it to its historical volatility, Calvert Floating Rate Advantage is 3.36 times less risky than Calvert Moderate. It trades about 0.39 of its potential returns per unit of risk. Calvert Moderate Allocation is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,061 in Calvert Moderate Allocation on April 20, 2025 and sell it today you would earn a total of 245.00 from holding Calvert Moderate Allocation or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Calvert Floating Rate Advantag vs. Calvert Moderate Allocation
Performance |
| Timeline |
| Calvert Floating Rate |
| Calvert Moderate All |
Calvert Floating-rate and Calvert Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Floating-rate and Calvert Moderate
The main advantage of trading using opposite Calvert Floating-rate and Calvert Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Floating-rate position performs unexpectedly, Calvert Moderate 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 Moderate will offset losses from the drop in Calvert Moderate's long position.| Calvert Floating-rate vs. Pace High Yield | Calvert Floating-rate vs. Neuberger Berman Income | Calvert Floating-rate vs. Transamerica High Yield | Calvert Floating-rate vs. Dunham High Yield |
| Calvert Moderate vs. Neuberger Berman Income | Calvert Moderate vs. Pace High Yield | Calvert Moderate vs. City National Rochdale | Calvert Moderate vs. Payden High 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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