Correlation Between Balanced Fund and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Calvert Short 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 Balanced Fund and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Calvert Short Duration, you can compare the effects of market volatilities on Balanced Fund and Calvert Short 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 Balanced Fund with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Calvert Short.
Diversification Opportunities for Balanced Fund and Calvert Short
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Balanced and Calvert is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Balanced Fund i.e., Balanced Fund and Calvert Short go up and down completely randomly.
Pair Corralation between Balanced Fund and Calvert Short
Assuming the 90 days horizon Balanced Fund Retail is expected to generate 4.19 times more return on investment than Calvert Short. However, Balanced Fund is 4.19 times more volatile than Calvert Short Duration. It trades about 0.07 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.17 per unit of risk. If you would invest 1,056 in Balanced Fund Retail on April 24, 2025 and sell it today you would earn a total of 237.00 from holding Balanced Fund Retail or generate 22.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Calvert Short Duration
Performance |
| Timeline |
| Balanced Fund Retail |
| Calvert Short Duration |
Balanced Fund and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Calvert Short
The main advantage of trading using opposite Balanced Fund and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Calvert Short 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 Short will offset losses from the drop in Calvert Short's long position.| Balanced Fund vs. Quantex Fund Retail | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Spectrum Fund Retail |
| Calvert Short vs. Calvert Equity Portfolio | Calvert Short vs. Calvert Small Cap | Calvert Short vs. Calvert Emerging Markets | Calvert Short vs. T Rowe Price |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |