Correlation Between Vanguard Strategic and Calvert Floating-rate
Can any of the company-specific risk be diversified away by investing in both Vanguard Strategic and Calvert Floating-rate 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 Vanguard Strategic and Calvert Floating-rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Strategic Small Cap and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Vanguard Strategic and Calvert Floating-rate 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 Vanguard Strategic with a short position of Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Strategic and Calvert Floating-rate.
Diversification Opportunities for Vanguard Strategic and Calvert Floating-rate
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanguard and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Strategic Small Cap and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate and Vanguard Strategic 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 Vanguard Strategic Small Cap are associated (or correlated) with Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Vanguard Strategic i.e., Vanguard Strategic and Calvert Floating-rate go up and down completely randomly.
Pair Corralation between Vanguard Strategic and Calvert Floating-rate
Assuming the 90 days horizon Vanguard Strategic Small Cap is expected to generate 9.55 times more return on investment than Calvert Floating-rate. However, Vanguard Strategic is 9.55 times more volatile than Calvert Floating Rate Advantage. It trades about 0.2 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.19 per unit of risk. If you would invest 3,744 in Vanguard Strategic Small Cap on May 31, 2025 and sell it today you would earn a total of 542.00 from holding Vanguard Strategic Small Cap or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Vanguard Strategic Small Cap vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Vanguard Strategic |
| Calvert Floating Rate |
Vanguard Strategic and Calvert Floating-rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Strategic and Calvert Floating-rate
The main advantage of trading using opposite Vanguard Strategic and Calvert Floating-rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Strategic position performs unexpectedly, Calvert Floating-rate 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 Floating-rate will offset losses from the drop in Calvert Floating-rate's long position.| Vanguard Strategic vs. Vanguard Explorer Value | Vanguard Strategic vs. Vanguard Strategic Equity | Vanguard Strategic vs. Vanguard Diversified Equity | Vanguard Strategic vs. Vanguard Mid Cap |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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