Correlation Between Cref Inflation and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Cref Inflation and Calvert Emerging 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 Cref Inflation and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Calvert Emerging Markets, you can compare the effects of market volatilities on Cref Inflation and Calvert Emerging 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 Cref Inflation with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Calvert Emerging.
Diversification Opportunities for Cref Inflation and Calvert Emerging
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cref and Calvert is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets and Cref Inflation 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 Cref Inflation Linked Bond are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Cref Inflation i.e., Cref Inflation and Calvert Emerging go up and down completely randomly.
Pair Corralation between Cref Inflation and Calvert Emerging
Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to generate 0.23 times more return on investment than Calvert Emerging. However, Cref Inflation Linked Bond is 4.33 times less risky than Calvert Emerging. It trades about 0.23 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.05 per unit of risk. If you would invest 8,755 in Cref Inflation Linked Bond on May 21, 2025 and sell it today you would earn a total of 221.00 from holding Cref Inflation Linked Bond or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Calvert Emerging Markets
Performance |
| Timeline |
| Cref Inflation Linked |
| Calvert Emerging Markets |
Cref Inflation and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation and Calvert Emerging
The main advantage of trading using opposite Cref Inflation and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.| Cref Inflation vs. John Hancock Municipal | Cref Inflation vs. Old Westbury Municipal | Cref Inflation vs. Ab Municipal Bond | Cref Inflation vs. Aig Government Money |
| Calvert Emerging vs. Tiaa Cref Lifestyle Moderate | Calvert Emerging vs. Retirement Living Through | Calvert Emerging vs. Retirement Living Through | Calvert Emerging 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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