Correlation Between Calvert Short and Fidelity Sai

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

By analyzing existing cross correlation between Calvert Short Duration and Fidelity Sai Minimum, you can compare the effects of market volatilities on Calvert Short and Fidelity Sai 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 Short with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Fidelity Sai.

Diversification Opportunities for Calvert Short and Fidelity Sai

0.5

Correlation Coefficient

Calvert Short  Fidelity Sai

Very weak diversification

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

Pair Corralation between Calvert Short and Fidelity Sai

Assuming the 90 days horizon Calvert Short Duration is expected to generate 0.17 times more return on investment than Fidelity Sai. However, Calvert Short Duration is 5.73 times less risky than Fidelity Sai. It trades about 0.24 of its potential returns per unit of risk. Fidelity Sai Minimum is currently generating about 0.01 per unit of risk. If you would invest  1,538  in Calvert Short Duration on December 21, 2024 and sell it today you would earn a total of  27.00  from holding Calvert Short Duration or generate 1.76% return on investment over 90 days.

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

Calvert Short Duration  vs.  Fidelity Sai Minimum

Calvert Short Duration

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Short Duration are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Sai Minimum

Risk-Adjusted Performance

Weak

Over the last 90 days Fidelity Sai Minimum has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fidelity Sai 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 Short and Fidelity Sai

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

The idea behind Calvert Short Duration and Fidelity Sai Minimum 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.