Correlation Between Calvert Emerging and Thrivent Moderately
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Thrivent Moderately 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 Emerging and Thrivent Moderately into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Emerging Markets and Thrivent Moderately Servative, you can compare the effects of market volatilities on Calvert Emerging and Thrivent Moderately 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 Emerging with a short position of Thrivent Moderately. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Thrivent Moderately.
Diversification Opportunities for Calvert Emerging and Thrivent Moderately
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Thrivent is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Thrivent Moderately Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderately and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Thrivent Moderately. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderately has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Thrivent Moderately go up and down completely randomly.
Pair Corralation between Calvert Emerging and Thrivent Moderately
Assuming the 90 days horizon Calvert Emerging Markets is expected to generate 1.59 times more return on investment than Thrivent Moderately. However, Calvert Emerging is 1.59 times more volatile than Thrivent Moderately Servative. It trades about 0.33 of its potential returns per unit of risk. Thrivent Moderately Servative is currently generating about 0.24 per unit of risk. If you would invest 1,022 in Calvert Emerging Markets on April 7, 2025 and sell it today you would earn a total of 222.00 from holding Calvert Emerging Markets or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Thrivent Moderately Servative
Performance |
| Timeline |
| Calvert Emerging Markets |
| Thrivent Moderately |
Calvert Emerging and Thrivent Moderately Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Thrivent Moderately
The main advantage of trading using opposite Calvert Emerging and Thrivent Moderately positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Thrivent Moderately 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 Thrivent Moderately will offset losses from the drop in Thrivent Moderately's long position.| Calvert Emerging vs. Pimco Energy Tactical | Calvert Emerging vs. Dreyfus Natural Resources | Calvert Emerging vs. New Alternatives Fund | Calvert Emerging vs. Global Resources 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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