Correlation Between Calvert Balanced and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Calvert Balanced and Aqr 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 Balanced and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Balanced Portfolio and Aqr Large Cap, you can compare the effects of market volatilities on Calvert Balanced and Aqr 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 Balanced with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Balanced and Aqr Large.
Diversification Opportunities for Calvert Balanced and Aqr Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Aqr is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Balanced Portfolio and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and Calvert Balanced 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 Balanced Portfolio are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Calvert Balanced i.e., Calvert Balanced and Aqr Large go up and down completely randomly.
Pair Corralation between Calvert Balanced and Aqr Large
Assuming the 90 days horizon Calvert Balanced is expected to generate 1.3 times less return on investment than Aqr Large. But when comparing it to its historical volatility, Calvert Balanced Portfolio is 1.53 times less risky than Aqr Large. It trades about 0.26 of its potential returns per unit of risk. Aqr Large Cap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,262 in Aqr Large Cap on June 13, 2025 and sell it today you would earn a total of 197.00 from holding Aqr Large Cap or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Balanced Portfolio vs. Aqr Large Cap
Performance |
| Timeline |
| Calvert Balanced Por |
| Aqr Large Cap |
Calvert Balanced and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Balanced and Aqr Large
The main advantage of trading using opposite Calvert Balanced and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Balanced position performs unexpectedly, Aqr 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 Aqr Large will offset losses from the drop in Aqr Large's long position.| Calvert Balanced vs. Aqr Large Cap | Calvert Balanced vs. Qs Large Cap | Calvert Balanced vs. Prudential Qma Large Cap | Calvert Balanced vs. Tax Managed Large Cap |
| Aqr Large vs. Franklin Emerging Market | Aqr Large vs. Western Assets Emerging | Aqr Large vs. Shelton Emerging Markets | Aqr Large vs. Investec Emerging Markets |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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