Correlation Between Moderate Balanced and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Moderate Balanced and Calvert Bond 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 Moderate Balanced and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderate Balanced Allocation and Calvert Bond Portfolio, you can compare the effects of market volatilities on Moderate Balanced and Calvert Bond 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 Moderate Balanced with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderate Balanced and Calvert Bond.
Diversification Opportunities for Moderate Balanced and Calvert Bond
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moderate and Calvert is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Moderate Balanced Allocation and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Moderate Balanced 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 Moderate Balanced Allocation are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Moderate Balanced i.e., Moderate Balanced and Calvert Bond go up and down completely randomly.
Pair Corralation between Moderate Balanced and Calvert Bond
Assuming the 90 days horizon Moderate Balanced Allocation is expected to generate 1.53 times more return on investment than Calvert Bond. However, Moderate Balanced is 1.53 times more volatile than Calvert Bond Portfolio. It trades about 0.18 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.14 per unit of risk. If you would invest 1,193 in Moderate Balanced Allocation on May 13, 2025 and sell it today you would earn a total of 57.00 from holding Moderate Balanced Allocation or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moderate Balanced Allocation vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Moderate Balanced |
| Calvert Bond Portfolio |
Moderate Balanced and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderate Balanced and Calvert Bond
The main advantage of trading using opposite Moderate Balanced and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderate Balanced position performs unexpectedly, Calvert Bond 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 Bond will offset losses from the drop in Calvert Bond's long position.| Moderate Balanced vs. Rbc Emerging Markets | Moderate Balanced vs. Franklin Emerging Market | Moderate Balanced vs. Aqr Tm Emerging | Moderate Balanced vs. Pace International Emerging |
| Calvert Bond vs. Aqr Long Short Equity | Calvert Bond vs. Balanced Fund Retail | Calvert Bond vs. Siit Equity Factor | Calvert Bond vs. Ab Select Equity |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |