Correlation Between Fidelity Series and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Calvert Bond 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 Fidelity Series and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Government and Calvert Bond Portfolio, you can compare the effects of market volatilities on Fidelity Series and Calvert Bond 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 Fidelity Series with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Calvert Bond.
Diversification Opportunities for Fidelity Series and Calvert Bond
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Calvert is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Fidelity Series 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 Fidelity Series Government are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Fidelity Series i.e., Fidelity Series and Calvert Bond go up and down completely randomly.
Pair Corralation between Fidelity Series and Calvert Bond
Assuming the 90 days horizon Fidelity Series is expected to generate 1.57 times less return on investment than Calvert Bond. But when comparing it to its historical volatility, Fidelity Series Government is 1.02 times less risky than Calvert Bond. It trades about 0.06 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,427 in Calvert Bond Portfolio on June 8, 2025 and sell it today you would earn a total of 53.00 from holding Calvert Bond Portfolio or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series Government vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Fidelity Series Gove |
| Calvert Bond Portfolio |
Fidelity Series and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Calvert Bond
The main advantage of trading using opposite Fidelity Series and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.| Fidelity Series vs. Dimensional Retirement Income | Fidelity Series vs. College Retirement Equities | Fidelity Series vs. Sa Worldwide Moderate | Fidelity Series vs. Moderately Aggressive Balanced |
| Calvert Bond vs. Federated High Yield | Calvert Bond vs. City National Rochdale | Calvert Bond vs. Multi Manager High Yield | Calvert Bond vs. Payden 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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