Correlation Between Calvert Green and Calvert Aggressive
Can any of the company-specific risk be diversified away by investing in both Calvert Green and Calvert Aggressive 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 Green and Calvert Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Green Bond and Calvert Aggressive Allocation, you can compare the effects of market volatilities on Calvert Green and Calvert Aggressive 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 Green with a short position of Calvert Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Green and Calvert Aggressive.
Diversification Opportunities for Calvert Green and Calvert Aggressive
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Green Bond and Calvert Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Aggressive and Calvert Green 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 Green Bond are associated (or correlated) with Calvert Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Aggressive has no effect on the direction of Calvert Green i.e., Calvert Green and Calvert Aggressive go up and down completely randomly.
Pair Corralation between Calvert Green and Calvert Aggressive
Assuming the 90 days horizon Calvert Green is expected to generate 10.68 times less return on investment than Calvert Aggressive. But when comparing it to its historical volatility, Calvert Green Bond is 2.31 times less risky than Calvert Aggressive. It trades about 0.06 of its potential returns per unit of risk. Calvert Aggressive Allocation is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,606 in Calvert Aggressive Allocation on April 26, 2025 and sell it today you would earn a total of 296.00 from holding Calvert Aggressive Allocation or generate 11.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calvert Green Bond vs. Calvert Aggressive Allocation
Performance |
Timeline |
Calvert Green Bond |
Calvert Aggressive |
Calvert Green and Calvert Aggressive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calvert Green and Calvert Aggressive
The main advantage of trading using opposite Calvert Green and Calvert Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Green position performs unexpectedly, Calvert Aggressive 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 Aggressive will offset losses from the drop in Calvert Aggressive's long position.Calvert Green vs. Calvert Moderate Allocation | Calvert Green vs. Calvert Developed Market | Calvert Green vs. Calvert International Responsible |
Calvert Aggressive vs. Virtus Seix Government | Calvert Aggressive vs. First American Funds | Calvert Aggressive vs. Franklin Adjustable Government | Calvert Aggressive vs. Elfun Government Money |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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