Correlation Between Federated Mdt and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Calvert Global 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 Federated Mdt and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Small and Calvert Global Equity, you can compare the effects of market volatilities on Federated Mdt and Calvert Global 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 Federated Mdt with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Calvert Global.
Diversification Opportunities for Federated Mdt and Calvert Global
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Calvert is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Small and Calvert Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Equity and Federated Mdt 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 Federated Mdt Small are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Equity has no effect on the direction of Federated Mdt i.e., Federated Mdt and Calvert Global go up and down completely randomly.
Pair Corralation between Federated Mdt and Calvert Global
Assuming the 90 days horizon Federated Mdt Small is expected to generate 1.49 times more return on investment than Calvert Global. However, Federated Mdt is 1.49 times more volatile than Calvert Global Equity. It trades about 0.24 of its potential returns per unit of risk. Calvert Global Equity is currently generating about 0.29 per unit of risk. If you would invest 2,373 in Federated Mdt Small on April 14, 2025 and sell it today you would earn a total of 485.00 from holding Federated Mdt Small or generate 20.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Small vs. Calvert Global Equity
Performance |
| Timeline |
| Federated Mdt Small |
| Calvert Global Equity |
Federated Mdt and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Calvert Global
The main advantage of trading using opposite Federated Mdt and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.| Federated Mdt vs. T Rowe Price | Federated Mdt vs. The Hartford Midcap | Federated Mdt vs. Federated Mdt Small | Federated Mdt vs. Fidelity Small Cap |
| Calvert Global vs. T Rowe Price | Calvert Global vs. Jhancock Disciplined Value | Calvert Global vs. T Rowe Price | Calvert Global vs. Locorr Strategic Allocation |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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