Correlation Between Calvert Moderate and Astor Long/short

Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Astor Long/short 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 Moderate and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calvert Moderate Allocation and Astor Longshort Fund, you can compare the effects of market volatilities on Calvert Moderate and Astor Long/short 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 Moderate with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Astor Long/short.

Diversification Opportunities for Calvert Moderate and Astor Long/short

1.0

Correlation Coefficient

Calvert Moderate  Astor Long/short

No risk reduction

The 3 months correlation between Calvert and Astor is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Calvert Moderate 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 Moderate Allocation are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Astor Long/short go up and down completely randomly.

Pair Corralation between Calvert Moderate and Astor Long/short

Assuming the 90 days horizon Calvert Moderate Allocation is expected to generate 1.19 times more return on investment than Astor Long/short. However, Calvert Moderate is 1.19 times more volatile than Astor Longshort Fund. It trades about 0.28 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.29 per unit of risk. If you would invest  2,002  in Calvert Moderate Allocation on April 26, 2025 and sell it today you would earn a total of  166.00  from holding Calvert Moderate Allocation or generate 8.29% return on investment over 90 days.

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

Calvert Moderate Allocation  vs.  Astor Longshort Fund

Calvert Moderate All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Moderate Allocation are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calvert Moderate may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Astor Long/short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Astor Long/short may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calvert Moderate and Astor Long/short

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

The idea behind Calvert Moderate Allocation and Astor Longshort Fund 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .