Correlation Between Viking Tax and Calvert Bond

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

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

Diversification Opportunities for Viking Tax and Calvert Bond

-0.03

Correlation Coefficient

Viking Tax  Calvert Bond

Good diversification

The 3 months correlation between Viking and Calvert is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Viking Tax Free Fund and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Viking Tax 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 Viking Tax Free Fund are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Viking Tax i.e., Viking Tax and Calvert Bond go up and down completely randomly.

Pair Corralation between Viking Tax and Calvert Bond

Assuming the 90 days horizon Viking Tax Free Fund is expected to under-perform the Calvert Bond. But the mutual fund apears to be less risky and, when comparing its historical volatility, Viking Tax Free Fund is 2.11 times less risky than Calvert Bond. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Calvert Bond Portfolio is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,416  in Calvert Bond Portfolio on May 10, 2025 and sell it today you would earn a total of  40.00  from holding Calvert Bond Portfolio or generate 2.82% return on investment over 90 days.

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

Viking Tax Free Fund  vs.  Calvert Bond Portfolio

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.

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.

Pair Trading with Viking Tax and Calvert Bond

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

The idea behind Viking Tax Free Fund and Calvert Bond Portfolio 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.