Correlation Between Calvert High and Short Oil
Can any of the company-specific risk be diversified away by investing in both Calvert High and Short Oil 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 Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Calvert High and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Short Oil.
Diversification Opportunities for Calvert High and Short Oil
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calvert and Short is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Calvert High i.e., Calvert High and Short Oil go up and down completely randomly.
Pair Corralation between Calvert High and Short Oil
Assuming the 90 days horizon Calvert High Yield is expected to generate 0.14 times more return on investment than Short Oil. However, Calvert High Yield is 6.96 times less risky than Short Oil. It trades about 0.44 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.17 per unit of risk. If you would invest 2,391 in Calvert High Yield on April 10, 2025 and sell it today you would earn a total of 120.00 from holding Calvert High Yield or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert High Yield vs. Short Oil Gas
Performance |
| Timeline |
| Calvert High Yield |
| Short Oil Gas |
Calvert High and Short Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Short Oil
The main advantage of trading using opposite Calvert High and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.| Calvert High vs. Gmo High Yield | Calvert High vs. Metropolitan West High | Calvert High vs. Pace High Yield | Calvert High vs. Virtus High Yield |
| Short Oil vs. The Lazard Funds | Short Oil vs. Mainstay Vertible Fund | Short Oil vs. Fidelity Vertible Securities | Short Oil vs. Invesco Vertible Securities |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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