Correlation Between Calvert Moderate and Calvert High
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Calvert 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 Moderate and Calvert High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Moderate Allocation and Calvert High Yield, you can compare the effects of market volatilities on Calvert Moderate and Calvert 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 Moderate with a short position of Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Calvert High.
Diversification Opportunities for Calvert Moderate and Calvert High
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 Moderate Allocation and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield and Calvert Moderate 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 Moderate Allocation are associated (or correlated) with Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Calvert High go up and down completely randomly.
Pair Corralation between Calvert Moderate and Calvert High
Assuming the 90 days horizon Calvert Moderate Allocation is expected to generate 4.71 times more return on investment than Calvert High. However, Calvert Moderate is 4.71 times more volatile than Calvert High Yield. It trades about 0.25 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.46 per unit of risk. If you would invest 1,878 in Calvert Moderate Allocation on April 6, 2025 and sell it today you would earn a total of 269.00 from holding Calvert Moderate Allocation or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. Calvert High Yield
Performance |
| Timeline |
| Calvert Moderate All |
| Calvert High Yield |
Calvert Moderate and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Calvert High
The main advantage of trading using opposite Calvert Moderate and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Calvert 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 Calvert High will offset losses from the drop in Calvert High's long position.| Calvert Moderate vs. Global Diversified Income | Calvert Moderate vs. Wells Fargo Diversified | Calvert Moderate vs. Wells Fargo Diversified | Calvert Moderate vs. Western Asset Diversified |
| Calvert High vs. Calvert Moderate Allocation | Calvert High vs. Old Westbury Large | Calvert High vs. Locorr Strategic Allocation | Calvert High vs. Growth Allocation Fund |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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