Correlation Between Franklin Moderate and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Franklin Moderate 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 Franklin Moderate and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Moderate Allocation and Calvert Short Duration, you can compare the effects of market volatilities on Franklin Moderate 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 Franklin Moderate with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Moderate and Calvert Short.
Diversification Opportunities for Franklin Moderate and Calvert Short
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Calvert is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Moderate Allocation 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 Franklin Moderate 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 Franklin Moderate Allocation 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 Franklin Moderate i.e., Franklin Moderate and Calvert Short go up and down completely randomly.
Pair Corralation between Franklin Moderate and Calvert Short
Assuming the 90 days horizon Franklin Moderate Allocation is expected to under-perform the Calvert Short. In addition to that, Franklin Moderate is 7.49 times more volatile than Calvert Short Duration. It trades about -0.05 of its total potential returns per unit of risk. Calvert Short Duration is currently generating about 0.14 per unit of volatility. If you would invest 1,584 in Calvert Short Duration on October 8, 2025 and sell it today you would earn a total of 13.00 from holding Calvert Short Duration or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Moderate Allocation vs. Calvert Short Duration
Performance |
| Timeline |
| Franklin Moderate |
| Calvert Short Duration |
Franklin Moderate and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Moderate and Calvert Short
The main advantage of trading using opposite Franklin Moderate and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Moderate 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.| Franklin Moderate vs. Rbc Ultra Short Fixed | Franklin Moderate vs. Artisan High Income | Franklin Moderate vs. Ambrus Core Bond | Franklin Moderate vs. Pace Strategic Fixed |
| Calvert Short vs. Rationalpier 88 Convertible | Calvert Short vs. Lord Abbett Convertible | Calvert Short vs. Columbia Convertible Securities | Calvert Short vs. Calamos Dynamic Convertible |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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