Correlation Between Calvert High and Congressional Effect

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

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

Diversification Opportunities for Calvert High and Congressional Effect

0.83

Correlation Coefficient

Calvert High  Congressional Effect

Very poor diversification

The 3 months correlation between Calvert and Congressional is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Congressional Effect Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congressional Effect and Calvert High 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 High Yield are associated (or correlated) with Congressional Effect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congressional Effect has no effect on the direction of Calvert High i.e., Calvert High and Congressional Effect go up and down completely randomly.

Pair Corralation between Calvert High and Congressional Effect

Assuming the 90 days horizon Calvert High is expected to generate 7.34 times less return on investment than Congressional Effect. But when comparing it to its historical volatility, Calvert High Yield is 4.2 times less risky than Congressional Effect. It trades about 0.12 of its potential returns per unit of risk. Congressional Effect Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,386  in Congressional Effect Fund on July 14, 2025 and sell it today you would earn a total of  118.00  from holding Congressional Effect Fund or generate 8.51% return on investment over 90 days.

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

Calvert High Yield  vs.  Congressional Effect Fund

Calvert High Yield

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert High Yield are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Congressional Effect

Risk-Adjusted Performance

Solid

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

Pair Trading with Calvert High and Congressional Effect

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

The idea behind Calvert High Yield and Congressional Effect 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.