Correlation Between Calvert Bond and Viking Tax

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

Diversification Opportunities for Calvert Bond and Viking Tax

0.11

Correlation Coefficient

Calvert Bond  Viking Tax

Average diversification

The 3 months correlation between Calvert and Viking is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Viking Tax Free Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Tax Free 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 Viking Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Tax Free has no effect on the direction of Calvert Bond i.e., Calvert Bond and Viking Tax go up and down completely randomly.

Pair Corralation between Calvert Bond and Viking Tax

Assuming the 90 days horizon Calvert Bond Portfolio is expected to generate 2.11 times more return on investment than Viking Tax. However, Calvert Bond is 2.11 times more volatile than Viking Tax Free Fund. It trades about 0.16 of its potential returns per unit of risk. Viking Tax Free Fund is currently generating about -0.01 per unit of risk. If you would invest  1,416  in Calvert Bond Portfolio on May 10, 2025 and sell it today you would earn a total of  39.00  from holding Calvert Bond Portfolio or generate 2.75% return on investment over 90 days.

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

Calvert Bond Portfolio  vs.  Viking Tax Free Fund

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 12 (%) 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.

Viking Tax Free

Risk-Adjusted Performance

Weakest

Over the last 90 days Viking Tax Free Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Viking Tax 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 Viking Tax

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

The idea behind Calvert Bond Portfolio and Viking Tax Free 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.