Correlation Between Calvert Bond and Oppenhmr Discovery

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

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

Diversification Opportunities for Calvert Bond and Oppenhmr Discovery

0.87

Correlation Coefficient

Calvert Bond  Oppenhmr Discovery

Very poor diversification

The 3 months correlation between Calvert and Oppenhmr is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Oppenhmr Discovery Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenhmr Discovery Mid and Calvert Bond 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 Bond Portfolio are associated (or correlated) with Oppenhmr Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenhmr Discovery Mid has no effect on the direction of Calvert Bond i.e., Calvert Bond and Oppenhmr Discovery go up and down completely randomly.

Pair Corralation between Calvert Bond and Oppenhmr Discovery

Assuming the 90 days horizon Calvert Bond is expected to generate 2.11 times less return on investment than Oppenhmr Discovery. But when comparing it to its historical volatility, Calvert Bond Portfolio is 2.81 times less risky than Oppenhmr Discovery. It trades about 0.17 of its potential returns per unit of risk. Oppenhmr Discovery Mid is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,365  in Oppenhmr Discovery Mid on May 27, 2025 and sell it today you would earn a total of  209.00  from holding Oppenhmr Discovery Mid or generate 6.21% return on investment over 90 days.

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

Calvert Bond Portfolio  vs.  Oppenhmr Discovery Mid

Calvert Bond Portfolio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Bond Portfolio are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oppenhmr Discovery Mid

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenhmr Discovery Mid are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Oppenhmr Discovery is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calvert Bond and Oppenhmr Discovery

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

The idea behind Calvert Bond Portfolio and Oppenhmr Discovery Mid 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.