Correlation Between Calvert Bond and Federated Government
Can any of the company-specific risk be diversified away by investing in both Calvert Bond and Federated Government 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 Federated Government 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 Federated Government Income, you can compare the effects of market volatilities on Calvert Bond and Federated Government 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 Federated Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Bond and Federated Government.
Diversification Opportunities for Calvert Bond and Federated Government
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calvert and Federated is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Federated Government Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Government 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 Federated Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Government has no effect on the direction of Calvert Bond i.e., Calvert Bond and Federated Government go up and down completely randomly.
Pair Corralation between Calvert Bond and Federated Government
Assuming the 90 days horizon Calvert Bond is expected to generate 1.1 times less return on investment than Federated Government. But when comparing it to its historical volatility, Calvert Bond Portfolio is 1.2 times less risky than Federated Government. It trades about 0.18 of its potential returns per unit of risk. Federated Government Income is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Federated Government Income on May 23, 2025 and sell it today you would earn a total of 29.00 from holding Federated Government Income or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Bond Portfolio vs. Federated Government Income
Performance |
| Timeline |
| Calvert Bond Portfolio |
| Federated Government |
Calvert Bond and Federated Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Bond and Federated Government
The main advantage of trading using opposite Calvert Bond and Federated Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Bond position performs unexpectedly, Federated Government 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 Federated Government will offset losses from the drop in Federated Government's long position.| Calvert Bond vs. Touchstone Small Cap | Calvert Bond vs. Old Westbury Small | Calvert Bond vs. Lebenthal Lisanti Small | Calvert Bond vs. Tax Managed Mid Small |
| Federated Government vs. Multisector Bond Sma | Federated Government vs. Siit High Yield | Federated Government vs. Bbh Intermediate Municipal | Federated Government vs. Goldman Sachs Bond |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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