Correlation Between Moderately Aggressive and Calvert International
Can any of the company-specific risk be diversified away by investing in both Moderately Aggressive and Calvert International 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 Moderately Aggressive and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderately Aggressive Balanced and Calvert International Opportunities, you can compare the effects of market volatilities on Moderately Aggressive and Calvert International 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 Moderately Aggressive with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderately Aggressive and Calvert International.
Diversification Opportunities for Moderately Aggressive and Calvert International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moderately and Calvert is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Moderately Aggressive Balanced and Calvert International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Moderately Aggressive 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 Moderately Aggressive Balanced are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Moderately Aggressive i.e., Moderately Aggressive and Calvert International go up and down completely randomly.
Pair Corralation between Moderately Aggressive and Calvert International
Assuming the 90 days horizon Moderately Aggressive Balanced is expected to generate 0.9 times more return on investment than Calvert International. However, Moderately Aggressive Balanced is 1.11 times less risky than Calvert International. It trades about 0.37 of its potential returns per unit of risk. Calvert International Opportunities is currently generating about 0.25 per unit of risk. If you would invest 1,094 in Moderately Aggressive Balanced on April 19, 2025 and sell it today you would earn a total of 148.00 from holding Moderately Aggressive Balanced or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Moderately Aggressive Balanced vs. Calvert International Opportun
Performance |
| Timeline |
| Moderately Aggressive |
| Calvert International |
Moderately Aggressive and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderately Aggressive and Calvert International
The main advantage of trading using opposite Moderately Aggressive and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderately Aggressive position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| Moderately Aggressive vs. Prudential Real Estate | Moderately Aggressive vs. Aew Real Estate | Moderately Aggressive vs. Tcw Global Real | Moderately Aggressive vs. Ivy Advantus Real |
| Calvert International vs. Eaton Vance Worldwide | Calvert International vs. Delaware Healthcare Fund | Calvert International vs. Prudential Health Sciences | Calvert International vs. Fidelity Advisor Health |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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