Correlation Between Calvert Bond and Acclivity Mid

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

Diversification Opportunities for Calvert Bond and Acclivity Mid

0.5

Correlation Coefficient

Calvert Bond  Acclivity Mid

Very weak diversification

The 3 months correlation between Calvert and Acclivity is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Bond Portfolio and Acclivity Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acclivity Mid Cap 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 Acclivity Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acclivity Mid Cap has no effect on the direction of Calvert Bond i.e., Calvert Bond and Acclivity Mid go up and down completely randomly.

Pair Corralation between Calvert Bond and Acclivity Mid

Assuming the 90 days horizon Calvert Bond is expected to generate 10.56 times less return on investment than Acclivity Mid. But when comparing it to its historical volatility, Calvert Bond Portfolio is 3.23 times less risky than Acclivity Mid. It trades about 0.06 of its potential returns per unit of risk. Acclivity Mid Cap is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,392  in Acclivity Mid Cap on April 26, 2025 and sell it today you would earn a total of  176.00  from holding Acclivity Mid Cap or generate 12.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Calvert Bond Portfolio  vs.  Acclivity Mid Cap

Calvert Bond Portfolio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Bond Portfolio are ranked lower than 5 (%) 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.

Acclivity Mid Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Acclivity Mid Cap are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Acclivity Mid may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calvert Bond and Acclivity Mid

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

The idea behind Calvert Bond Portfolio and Acclivity Mid Cap 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.