Correlation Between Calvert Moderate and Fidelity Large
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Fidelity Large 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 Fidelity Large 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 Fidelity Large Cap, you can compare the effects of market volatilities on Calvert Moderate and Fidelity Large 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 Fidelity Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Fidelity Large.
Diversification Opportunities for Calvert Moderate and Fidelity Large
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Fidelity Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Large Cap 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 Fidelity Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Large Cap has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Fidelity Large go up and down completely randomly.
Pair Corralation between Calvert Moderate and Fidelity Large
Assuming the 90 days horizon Calvert Moderate is expected to generate 2.12 times less return on investment than Fidelity Large. But when comparing it to its historical volatility, Calvert Moderate Allocation is 1.39 times less risky than Fidelity Large. It trades about 0.2 of its potential returns per unit of risk. Fidelity Large Cap is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,603 in Fidelity Large Cap on June 13, 2025 and sell it today you would earn a total of 181.00 from holding Fidelity Large Cap or generate 11.29% 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. Fidelity Large Cap
Performance |
| Timeline |
| Calvert Moderate All |
| Fidelity Large Cap |
Calvert Moderate and Fidelity Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Fidelity Large
The main advantage of trading using opposite Calvert Moderate and Fidelity Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Fidelity Large 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 Fidelity Large will offset losses from the drop in Fidelity Large's long position.| Calvert Moderate vs. Calamos Dynamic Convertible | Calvert Moderate vs. Putnam Convertible Securities | Calvert Moderate vs. Allianzgi Convertible Income | Calvert Moderate vs. Advent Claymore Convertible |
| Fidelity Large vs. Mesirow Financial Small | Fidelity Large vs. Blackrock Financial Institutions | Fidelity Large vs. Rmb Mendon Financial | Fidelity Large vs. Transamerica Financial Life |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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