Correlation Between Calvert Aggressive and Asg Global

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

By analyzing existing cross correlation between Calvert Aggressive Allocation and Asg Global Alternatives, you can compare the effects of market volatilities on Calvert Aggressive and Asg Global 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 Aggressive with a short position of Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Aggressive and Asg Global.

Diversification Opportunities for Calvert Aggressive and Asg Global

0.76

Correlation Coefficient

Calvert Aggressive  Asg Global

Poor diversification

The 3 months correlation between Calvert and Asg is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Aggressive Allocation and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives and Calvert Aggressive 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 Aggressive Allocation are associated (or correlated) with Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Calvert Aggressive i.e., Calvert Aggressive and Asg Global go up and down completely randomly.

Pair Corralation between Calvert Aggressive and Asg Global

Assuming the 90 days horizon Calvert Aggressive Allocation is expected to under-perform the Asg Global. In addition to that, Calvert Aggressive is 2.78 times more volatile than Asg Global Alternatives. It trades about -0.25 of its total potential returns per unit of risk. Asg Global Alternatives is currently generating about -0.19 per unit of volatility. If you would invest  1,068  in Asg Global Alternatives on October 9, 2024 and sell it today you would lose (14.00) from holding Asg Global Alternatives or give up 1.31% of portfolio value over 90 days.

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

Calvert Aggressive Allocation  vs.  Asg Global Alternatives

Calvert Aggressive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert Aggressive Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calvert Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asg Global Alternatives

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asg Global Alternatives has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Asg Global 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 Aggressive and Asg Global

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

The idea behind Calvert Aggressive Allocation and Asg Global Alternatives 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.