Correlation Between Federated Institutional and Calvert High
Can any of the company-specific risk be diversified away by investing in both Federated Institutional and Calvert High 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 Federated Institutional and Calvert High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Institutional High and Calvert High Yield, you can compare the effects of market volatilities on Federated Institutional and Calvert High 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 Federated Institutional with a short position of Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Institutional and Calvert High.
Diversification Opportunities for Federated Institutional and Calvert High
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Calvert is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Institutional High and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield and Federated Institutional 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 Federated Institutional High are associated (or correlated) with Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Federated Institutional i.e., Federated Institutional and Calvert High go up and down completely randomly.
Pair Corralation between Federated Institutional and Calvert High
Assuming the 90 days horizon Federated Institutional High is expected to generate 1.03 times more return on investment than Calvert High. However, Federated Institutional is 1.03 times more volatile than Calvert High Yield. It trades about 0.4 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.37 per unit of risk. If you would invest 859.00 in Federated Institutional High on April 19, 2025 and sell it today you would earn a total of 40.00 from holding Federated Institutional High or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Federated Institutional High vs. Calvert High Yield
Performance |
| Timeline |
| Federated Institutional |
| Calvert High Yield |
Federated Institutional and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Institutional and Calvert High
The main advantage of trading using opposite Federated Institutional and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Institutional position performs unexpectedly, Calvert High 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 High will offset losses from the drop in Calvert High's long position.| Federated Institutional vs. Goldman Sachs Emerging | Federated Institutional vs. Jpmorgan High Yield | Federated Institutional vs. Jpmorgan Short Duration | Federated Institutional vs. Jpmorgan Mid Cap |
| Calvert High vs. Pioneer Money Market | Calvert High vs. Putnam Money Market | Calvert High vs. Ubs Money Series | Calvert High vs. The Gabelli Money |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |