Correlation Between Aston/herndon Large and Calvert Us

Can any of the company-specific risk be diversified away by investing in both Aston/herndon Large and Calvert Us 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 Aston/herndon Large and Calvert Us into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astonherndon Large Cap and Calvert Large Cap E, you can compare the effects of market volatilities on Aston/herndon Large and Calvert Us 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 Aston/herndon Large with a short position of Calvert Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston/herndon Large and Calvert Us.

Diversification Opportunities for Aston/herndon Large and Calvert Us

0.99

Correlation Coefficient

Aston/herndon Large  Calvert Us

No risk reduction

The 3 months correlation between Aston/herndon and Calvert is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Astonherndon Large Cap and Calvert Large Cap E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Aston/herndon Large 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 Astonherndon Large Cap are associated (or correlated) with Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Aston/herndon Large i.e., Aston/herndon Large and Calvert Us go up and down completely randomly.

Pair Corralation between Aston/herndon Large and Calvert Us

Assuming the 90 days horizon Astonherndon Large Cap is expected to generate 0.77 times more return on investment than Calvert Us. However, Astonherndon Large Cap is 1.31 times less risky than Calvert Us. It trades about 0.25 of its potential returns per unit of risk. Calvert Large Cap E is currently generating about 0.17 per unit of risk. If you would invest  1,158  in Astonherndon Large Cap on May 15, 2025 and sell it today you would earn a total of  97.00  from holding Astonherndon Large Cap or generate 8.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Astonherndon Large Cap  vs.  Calvert Large Cap E

Astonherndon Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astonherndon Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Aston/herndon Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Us may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Aston/herndon Large and Calvert Us

The main advantage of trading using opposite Aston/herndon Large and Calvert Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston/herndon Large position performs unexpectedly, Calvert Us 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 Us will offset losses from the drop in Calvert Us' long position.

The idea behind Astonherndon Large Cap and Calvert Large Cap E pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.