Correlation Between Chase Growth and Calvert Bond

Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chase Growth Fund and Calvert Bond Portfolio, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Calvert Bond.

Diversification Opportunities for Chase Growth and Calvert Bond

0.75

Correlation Coefficient

Chase Growth  Calvert Bond

Poor diversification

The 3 months correlation between Chase and Calvert is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund 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 Chase Growth 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 Chase Growth Fund 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 Chase Growth i.e., Chase Growth and Calvert Bond go up and down completely randomly.

Pair Corralation between Chase Growth and Calvert Bond

Assuming the 90 days horizon Chase Growth Fund is expected to generate 2.51 times more return on investment than Calvert Bond. However, Chase Growth is 2.51 times more volatile than Calvert Bond Portfolio. It trades about 0.32 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.08 per unit of risk. If you would invest  1,319  in Chase Growth Fund on May 4, 2025 and sell it today you would earn a total of  216.00  from holding Chase Growth Fund or generate 16.38% return on investment over 90 days.

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

Chase Growth Fund  vs.  Calvert Bond Portfolio

Chase Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chase Growth Fund are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Chase Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Bond Portfolio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Bond Portfolio are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Calvert Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Chase Growth and Calvert Bond

The main advantage of trading using opposite Chase Growth and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.

The idea behind Chase Growth Fund and Calvert Bond Portfolio 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..