Correlation Between Calvert Floating and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Calvert Floating and Calvert Bond 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 Calvert Floating and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Floating Rate Advantage and Calvert Bond Portfolio, you can compare the effects of market volatilities on Calvert Floating and Calvert Bond 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 Calvert Floating with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Floating and Calvert Bond.
Diversification Opportunities for Calvert Floating and Calvert Bond
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Floating Rate Advantag and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Calvert Floating 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 Calvert Floating Rate Advantage are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Calvert Floating i.e., Calvert Floating and Calvert Bond go up and down completely randomly.
Pair Corralation between Calvert Floating and Calvert Bond
Assuming the 90 days horizon Calvert Floating Rate Advantage is expected to generate 0.52 times more return on investment than Calvert Bond. However, Calvert Floating Rate Advantage is 1.91 times less risky than Calvert Bond. It trades about 0.34 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.06 per unit of risk. If you would invest 852.00 in Calvert Floating Rate Advantage on April 26, 2025 and sell it today you would earn a total of 27.00 from holding Calvert Floating Rate Advantage or generate 3.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calvert Floating Rate Advantag vs. Calvert Bond Portfolio
Performance |
Timeline |
Calvert Floating Rate |
Calvert Bond Portfolio |
Calvert Floating and Calvert Bond Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calvert Floating and Calvert Bond
The main advantage of trading using opposite Calvert Floating and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Floating position performs unexpectedly, Calvert Bond 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 Bond will offset losses from the drop in Calvert Bond's long position.Calvert Floating vs. Calvert Moderate Allocation | Calvert Floating vs. Calvert Developed Market | Calvert Floating vs. Calvert International Responsible |
Calvert Bond vs. Allianzgi Convertible Income | Calvert Bond vs. Putnam Convertible Securities | Calvert Bond vs. Calamos Dynamic Convertible | Calvert Bond vs. Gabelli Convertible And |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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