Correlation Between Balanced Fund and Calvert Large
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Calvert Large 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 Large 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 Large Cap E, you can compare the effects of market volatilities on Balanced Fund and Calvert Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Calvert Large.
Diversification Opportunities for Balanced Fund and Calvert Large
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Balanced and Calvert is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Calvert Large Cap E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Balanced Fund i.e., Balanced Fund and Calvert Large go up and down completely randomly.
Pair Corralation between Balanced Fund and Calvert Large
Assuming the 90 days horizon Balanced Fund is expected to generate 1.94 times less return on investment than Calvert Large. But when comparing it to its historical volatility, Balanced Fund Retail is 1.65 times less risky than Calvert Large. It trades about 0.28 of its potential returns per unit of risk. Calvert Large Cap E is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 4,725 in Calvert Large Cap E on April 27, 2025 and sell it today you would earn a total of 778.00 from holding Calvert Large Cap E or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Calvert Large Cap E
Performance |
| Timeline |
| Balanced Fund Retail |
| Calvert Large Cap |
Risk-Adjusted Performance
Solid
Weak | Strong |
Balanced Fund and Calvert Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Calvert Large
The main advantage of trading using opposite Balanced Fund and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Calvert Large 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 Large will offset losses from the drop in Calvert Large's long position.| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
| Calvert Large vs. Qs Moderate Growth | Calvert Large vs. Cornerstone Moderately Aggressive | Calvert Large vs. Qs Moderate Growth | Calvert Large vs. Tiaa Cref Lifestyle Moderate |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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