Correlation Between Eagle Small and Calvert Unconstrained
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Calvert Unconstrained 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 Eagle Small and Calvert Unconstrained into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Small Cap and Calvert Unconstrained Bond, you can compare the effects of market volatilities on Eagle Small and Calvert Unconstrained 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 Eagle Small with a short position of Calvert Unconstrained. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Calvert Unconstrained.
Diversification Opportunities for Eagle Small and Calvert Unconstrained
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Calvert is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Calvert Unconstrained Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Unconstrained and Eagle Small 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 Eagle Small Cap are associated (or correlated) with Calvert Unconstrained. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Unconstrained has no effect on the direction of Eagle Small i.e., Eagle Small and Calvert Unconstrained go up and down completely randomly.
Pair Corralation between Eagle Small and Calvert Unconstrained
Assuming the 90 days horizon Eagle Small Cap is expected to generate 5.95 times more return on investment than Calvert Unconstrained. However, Eagle Small is 5.95 times more volatile than Calvert Unconstrained Bond. It trades about 0.17 of its potential returns per unit of risk. Calvert Unconstrained Bond is currently generating about 0.27 per unit of risk. If you would invest 1,940 in Eagle Small Cap on May 29, 2025 and sell it today you would earn a total of 204.00 from holding Eagle Small Cap or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Eagle Small Cap vs. Calvert Unconstrained Bond
Performance |
| Timeline |
| Eagle Small Cap |
| Calvert Unconstrained |
Eagle Small and Calvert Unconstrained Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Calvert Unconstrained
The main advantage of trading using opposite Eagle Small and Calvert Unconstrained positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Calvert Unconstrained 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 Unconstrained will offset losses from the drop in Calvert Unconstrained's long position.| Eagle Small vs. Upright Growth Income | Eagle Small vs. Chase Growth Fund | Eagle Small vs. Auer Growth Fund | Eagle Small vs. Eagle Growth Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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