Correlation Between Calvert Small and American Mutual
Can any of the company-specific risk be diversified away by investing in both Calvert Small and American Mutual 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 Small and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Small Cap and American Mutual Fund, you can compare the effects of market volatilities on Calvert Small and American Mutual 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 Small with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Small and American Mutual.
Diversification Opportunities for Calvert Small and American Mutual
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and American is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Small Cap and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Calvert Small 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 Small Cap are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Calvert Small i.e., Calvert Small and American Mutual go up and down completely randomly.
Pair Corralation between Calvert Small and American Mutual
Assuming the 90 days horizon Calvert Small is expected to generate 2.18 times less return on investment than American Mutual. In addition to that, Calvert Small is 2.01 times more volatile than American Mutual Fund. It trades about 0.07 of its total potential returns per unit of risk. American Mutual Fund is currently generating about 0.31 per unit of volatility. If you would invest 5,720 in American Mutual Fund on May 2, 2025 and sell it today you would earn a total of 321.00 from holding American Mutual Fund or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Small Cap vs. American Mutual Fund
Performance |
| Timeline |
| Calvert Small Cap |
| American Mutual |
Calvert Small and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Small and American Mutual
The main advantage of trading using opposite Calvert Small and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Small position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Calvert Small vs. Calvert Equity Portfolio | Calvert Small vs. Calvert Emerging Markets | Calvert Small vs. Calvert Large Cap | Calvert Small vs. Calvert Short Duration |
| American Mutual vs. Amcap Fund Class | American Mutual vs. American Balanced Fund | American Mutual vs. New Perspective Fund | American Mutual vs. New World 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |