Correlation Between Eic Value and Calvert Floating-rate

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

By analyzing existing cross correlation between Eic Value Fund and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Eic Value and Calvert Floating-rate 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 Eic Value with a short position of Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Calvert Floating-rate.

Diversification Opportunities for Eic Value and Calvert Floating-rate

0.49

Correlation Coefficient

Eic Value  Calvert Floating-rate

Very weak diversification

The 3 months correlation between Eic and Calvert is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate and Eic Value 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 Eic Value Fund are associated (or correlated) with Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Eic Value i.e., Eic Value and Calvert Floating-rate go up and down completely randomly.

Pair Corralation between Eic Value and Calvert Floating-rate

Assuming the 90 days horizon Eic Value Fund is expected to generate 4.76 times more return on investment than Calvert Floating-rate. However, Eic Value is 4.76 times more volatile than Calvert Floating Rate Advantage. It trades about 0.1 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.23 per unit of risk. If you would invest  1,809  in Eic Value Fund on May 16, 2025 and sell it today you would earn a total of  82.00  from holding Eic Value Fund or generate 4.53% return on investment over 90 days.

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

Eic Value Fund  vs.  Calvert Floating Rate Advantag

Eic Value Fund

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eic Value Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Eic Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Floating Rate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Floating Rate Advantage are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Floating-rate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eic Value and Calvert Floating-rate

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

The idea behind Eic Value Fund and Calvert Floating Rate Advantage 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.