Correlation Between Valic Company and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Valic Company 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 Valic Company and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Calvert Short Duration, you can compare the effects of market volatilities on Valic Company 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 Valic Company with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Calvert Short.
Diversification Opportunities for Valic Company and Calvert Short
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Calvert is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I 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 Valic Company 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 Valic Company I 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 Valic Company i.e., Valic Company and Calvert Short go up and down completely randomly.
Pair Corralation between Valic Company and Calvert Short
Assuming the 90 days horizon Valic Company I is expected to generate 9.11 times more return on investment than Calvert Short. However, Valic Company is 9.11 times more volatile than Calvert Short Duration. It trades about 0.17 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.22 per unit of risk. If you would invest 1,107 in Valic Company I on June 3, 2025 and sell it today you would earn a total of 144.00 from holding Valic Company I or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Calvert Short Duration
Performance |
| Timeline |
| Valic Company I |
| Calvert Short Duration |
Valic Company and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Calvert Short
The main advantage of trading using opposite Valic Company and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company 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.| Valic Company vs. Global Technology Portfolio | Valic Company vs. Fidelity Advisor Technology | Valic Company vs. Columbia Global Technology | Valic Company vs. Blackrock Science Technology |
| Calvert Short vs. Calvert Equity Portfolio | Calvert Short vs. Calvert Small Cap | Calvert Short vs. Calvert Emerging Markets | Calvert Short vs. T Rowe Price |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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