Correlation Between Calvert Bond and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Calvert Bond and Ashmore Emerging 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 Bond and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Bond Portfolio and Ashmore Emerging Markets, you can compare the effects of market volatilities on Calvert Bond and Ashmore Emerging 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 Bond with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Bond and Ashmore Emerging.
Diversification Opportunities for Calvert Bond and Ashmore Emerging
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Ashmore is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Calvert Bond 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 Bond Portfolio are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Calvert Bond i.e., Calvert Bond and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Calvert Bond and Ashmore Emerging
Assuming the 90 days horizon Calvert Bond is expected to generate 1.59 times less return on investment than Ashmore Emerging. In addition to that, Calvert Bond is 1.28 times more volatile than Ashmore Emerging Markets. It trades about 0.16 of its total potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.33 per unit of volatility. If you would invest 556.00 in Ashmore Emerging Markets on May 31, 2025 and sell it today you would earn a total of 24.00 from holding Ashmore Emerging Markets or generate 4.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Bond Portfolio vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Calvert Bond Portfolio |
| Ashmore Emerging Markets |
Calvert Bond and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Bond and Ashmore Emerging
The main advantage of trading using opposite Calvert Bond and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Bond position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Calvert Bond vs. Putnam Money Market | Calvert Bond vs. Aig Government Money | Calvert Bond vs. Schwab Government Money | Calvert Bond vs. Money Market Obligations |
| Ashmore Emerging vs. Multimanager Lifestyle Growth | Ashmore Emerging vs. Artisan Small Cap | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging vs. Lifestyle Ii Growth |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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