Correlation Between Shenkman Short and Calvert High
Can any of the company-specific risk be diversified away by investing in both Shenkman Short and Calvert High 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 Shenkman Short and Calvert High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenkman Short Duration and Calvert High Yield, you can compare the effects of market volatilities on Shenkman Short and Calvert High 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 Shenkman Short with a short position of Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenkman Short and Calvert High.
Diversification Opportunities for Shenkman Short and Calvert High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenkman and Calvert is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shenkman Short Duration and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield and Shenkman Short 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 Shenkman Short Duration are associated (or correlated) with Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Shenkman Short i.e., Shenkman Short and Calvert High go up and down completely randomly.
Pair Corralation between Shenkman Short and Calvert High
Assuming the 90 days horizon Shenkman Short is expected to generate 1.21 times less return on investment than Calvert High. But when comparing it to its historical volatility, Shenkman Short Duration is 1.51 times less risky than Calvert High. It trades about 0.21 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,440 in Calvert High Yield on April 1, 2025 and sell it today you would earn a total of 70.00 from holding Calvert High Yield or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenkman Short Duration vs. Calvert High Yield
Performance |
| Timeline |
| Shenkman Short Duration |
| Calvert High Yield |
Shenkman Short and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenkman Short and Calvert High
The main advantage of trading using opposite Shenkman Short and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenkman Short position performs unexpectedly, Calvert High 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 High will offset losses from the drop in Calvert High's long position.| Shenkman Short vs. Legg Mason Bw | Shenkman Short vs. Ab Global Risk | Shenkman Short vs. Tweedy Browne Global | Shenkman Short vs. T Rowe Price |
| Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Short Duration | Calvert High vs. Calvert International Responsible |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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