Correlation Between Calvert High and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Calvert High and Old Westbury 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 High and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert High Yield and Old Westbury Fixed, you can compare the effects of market volatilities on Calvert High and Old Westbury 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 High with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Old Westbury.
Diversification Opportunities for Calvert High and Old Westbury
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Old is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Old Westbury Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Fixed and Calvert High 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 High Yield are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Fixed has no effect on the direction of Calvert High i.e., Calvert High and Old Westbury go up and down completely randomly.
Pair Corralation between Calvert High and Old Westbury
Assuming the 90 days horizon Calvert High Yield is expected to generate 1.02 times more return on investment than Old Westbury. However, Calvert High is 1.02 times more volatile than Old Westbury Fixed. It trades about 0.18 of its potential returns per unit of risk. Old Westbury Fixed is currently generating about 0.07 per unit of risk. If you would invest 2,436 in Calvert High Yield on March 30, 2025 and sell it today you would earn a total of 74.00 from holding Calvert High Yield or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Calvert High Yield vs. Old Westbury Fixed
Performance |
| Timeline |
| Calvert High Yield |
| Old Westbury Fixed |
Calvert High and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Old Westbury
The main advantage of trading using opposite Calvert High and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Short Duration | Calvert High vs. Calvert International Responsible |
| Old Westbury vs. Ab Bond Inflation | Old Westbury vs. Ambrus Core Bond | Old Westbury vs. Ab Global Bond | Old Westbury vs. Artisan High Income |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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