Correlation Between Calvert Bond and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Calvert Bond and Mfs 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 Mfs 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 Mfs Emerging Markets, you can compare the effects of market volatilities on Calvert Bond and Mfs 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 Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Bond and Mfs Emerging.
Diversification Opportunities for Calvert Bond and Mfs Emerging
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Mfs is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs 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 Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Calvert Bond i.e., Calvert Bond and Mfs Emerging go up and down completely randomly.
Pair Corralation between Calvert Bond and Mfs Emerging
Assuming the 90 days horizon Calvert Bond is expected to generate 1.29 times less return on investment than Mfs Emerging. But when comparing it to its historical volatility, Calvert Bond Portfolio is 1.19 times less risky than Mfs Emerging. It trades about 0.16 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 564.00 in Mfs Emerging Markets on June 2, 2025 and sell it today you would earn a total of 20.00 from holding Mfs Emerging Markets or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Bond Portfolio vs. Mfs Emerging Markets
Performance |
| Timeline |
| Calvert Bond Portfolio |
| Mfs Emerging Markets |
Calvert Bond and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Bond and Mfs Emerging
The main advantage of trading using opposite Calvert Bond and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Bond position performs unexpectedly, Mfs 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 Mfs Emerging will offset losses from the drop in Mfs Emerging's long position.| Calvert Bond vs. Gurtin California Muni | Calvert Bond vs. Virtus Seix Government | Calvert Bond vs. Prudential California Muni | Calvert Bond vs. Aig Government Money |
| Mfs Emerging vs. Global Gold Fund | Mfs Emerging vs. Gold And Precious | Mfs Emerging vs. Deutsche Gold Precious | Mfs Emerging vs. World Precious Minerals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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