Correlation Between Calvert Floating and Rbc China

Can any of the company-specific risk be diversified away by investing in both Calvert Floating and Rbc China 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 Rbc China 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 Rbc China Equity, you can compare the effects of market volatilities on Calvert Floating and Rbc China 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 Rbc China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Floating and Rbc China.

Diversification Opportunities for Calvert Floating and Rbc China

0.81

Correlation Coefficient

Calvert Floating  Rbc China

Very poor diversification

The 3 months correlation between Calvert and Rbc is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Floating Rate Advantag and Rbc China Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc China Equity 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 Rbc China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc China Equity has no effect on the direction of Calvert Floating i.e., Calvert Floating and Rbc China go up and down completely randomly.

Pair Corralation between Calvert Floating and Rbc China

Assuming the 90 days horizon Calvert Floating is expected to generate 5.71 times less return on investment than Rbc China. But when comparing it to its historical volatility, Calvert Floating Rate Advantage is 6.53 times less risky than Rbc China. It trades about 0.2 of its potential returns per unit of risk. Rbc China Equity is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  981.00  in Rbc China Equity on May 20, 2025 and sell it today you would earn a total of  113.00  from holding Rbc China Equity or generate 11.52% return on investment over 90 days.

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

Calvert Floating Rate Advantag  vs.  Rbc China Equity

Calvert Floating Rate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Floating Rate Advantage are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Floating is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rbc China Equity

Risk-Adjusted Performance

Good

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

Pair Trading with Calvert Floating and Rbc China

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

The idea behind Calvert Floating Rate Advantage and Rbc China Equity 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 Transaction History module to view history of all your transactions and understand their impact on performance.