Correlation Between Multimanager Lifestyle and Calvert Floating-rate
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle and Calvert Floating-rate 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 Multimanager Lifestyle and Calvert Floating-rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Moderate and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Multimanager Lifestyle and Calvert Floating-rate 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 Multimanager Lifestyle with a short position of Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Calvert Floating-rate.
Diversification Opportunities for Multimanager Lifestyle and Calvert Floating-rate
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multimanager and Calvert is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Moderat and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate and Multimanager Lifestyle 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 Multimanager Lifestyle Moderate are associated (or correlated) with Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Multimanager Lifestyle i.e., Multimanager Lifestyle and Calvert Floating-rate go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Calvert Floating-rate
Assuming the 90 days horizon Multimanager Lifestyle Moderate is expected to generate 2.4 times more return on investment than Calvert Floating-rate. However, Multimanager Lifestyle is 2.4 times more volatile than Calvert Floating Rate Advantage. It trades about 0.23 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.19 per unit of risk. If you would invest 1,243 in Multimanager Lifestyle Moderate on June 4, 2025 and sell it today you would earn a total of 51.00 from holding Multimanager Lifestyle Moderate or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimanager Lifestyle Moderat vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Multimanager Lifestyle |
| Calvert Floating Rate |
Multimanager Lifestyle and Calvert Floating-rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Calvert Floating-rate
The main advantage of trading using opposite Multimanager Lifestyle and Calvert Floating-rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle position performs unexpectedly, Calvert Floating-rate 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 Floating-rate will offset losses from the drop in Calvert Floating-rate's long position.| Multimanager Lifestyle vs. Gold And Precious | Multimanager Lifestyle vs. Europac Gold Fund | Multimanager Lifestyle vs. Great West Goldman Sachs | Multimanager Lifestyle vs. Gold Portfolio Fidelity |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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