Correlation Between Thomas White and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Thomas White and Calvert Short 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 Thomas White and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thomas White Emerging and Calvert Short Duration, you can compare the effects of market volatilities on Thomas White and Calvert Short 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 Thomas White with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thomas White and Calvert Short.
Diversification Opportunities for Thomas White and Calvert Short
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thomas and Calvert is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Thomas White Emerging and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Thomas White 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 Thomas White Emerging are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Thomas White i.e., Thomas White and Calvert Short go up and down completely randomly.
Pair Corralation between Thomas White and Calvert Short
Assuming the 90 days horizon Thomas White Emerging is expected to generate 6.32 times more return on investment than Calvert Short. However, Thomas White is 6.32 times more volatile than Calvert Short Duration. It trades about 0.32 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.17 per unit of risk. If you would invest 975.00 in Thomas White Emerging on April 15, 2025 and sell it today you would earn a total of 166.00 from holding Thomas White Emerging or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thomas White Emerging vs. Calvert Short Duration
Performance |
| Timeline |
| Thomas White Emerging |
| Calvert Short Duration |
Thomas White and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thomas White and Calvert Short
The main advantage of trading using opposite Thomas White and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thomas White position performs unexpectedly, Calvert Short 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 Short will offset losses from the drop in Calvert Short's long position.| Thomas White vs. Blackrock High Yield | Thomas White vs. Siit High Yield | Thomas White vs. Neuberger Berman Income | Thomas White vs. Transamerica High Yield |
| Calvert Short vs. Calamos Dynamic Convertible | Calvert Short vs. Columbia Convertible Securities | Calvert Short vs. Putnam Convertible Securities | Calvert Short vs. Fidelity Sai Convertible |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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