Correlation Between Fidelity Flex and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Fidelity Flex 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 Flex 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 Flex Servative and Calvert Bond Portfolio, you can compare the effects of market volatilities on Fidelity Flex 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 Flex with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Flex and Calvert Bond.
Diversification Opportunities for Fidelity Flex and Calvert Bond
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Calvert is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Flex Servative 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 Flex 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 Flex Servative 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 Flex i.e., Fidelity Flex and Calvert Bond go up and down completely randomly.
Pair Corralation between Fidelity Flex and Calvert Bond
Assuming the 90 days horizon Fidelity Flex is expected to generate 3.81 times less return on investment than Calvert Bond. But when comparing it to its historical volatility, Fidelity Flex Servative is 4.59 times less risky than Calvert Bond. It trades about 0.2 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Calvert Bond Portfolio on May 31, 2025 and sell it today you would earn a total of 38.00 from holding Calvert Bond Portfolio or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Flex Servative vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Fidelity Flex Servative |
| Calvert Bond Portfolio |
Fidelity Flex and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Flex and Calvert Bond
The main advantage of trading using opposite Fidelity Flex and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Flex 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 Flex vs. Fa 529 Aggressive | Fidelity Flex vs. Iaadx | Fidelity Flex vs. Balanced Fund Retail | Fidelity Flex vs. Wmcanx |
| Calvert Bond vs. Putnam Money Market | Calvert Bond vs. Aig Government Money | Calvert Bond vs. Schwab Government Money | Calvert Bond vs. Money Market Obligations |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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