Correlation Between Calvert Floating-rate and Columbia International

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Can any of the company-specific risk be diversified away by investing in both Calvert Floating-rate and Columbia International 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 Floating-rate and Columbia International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Floating Rate Advantage and Columbia International Value, you can compare the effects of market volatilities on Calvert Floating-rate and Columbia International 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 Floating-rate with a short position of Columbia International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Floating-rate and Columbia International.

Diversification Opportunities for Calvert Floating-rate and Columbia International

CalvertColumbiaDiversified AwayCalvertColumbiaDiversified Away100%
-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Calvert and Columbia is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Floating Rate Advantag and Columbia International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia International and Calvert Floating-rate 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 Floating Rate Advantage are associated (or correlated) with Columbia International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia International has no effect on the direction of Calvert Floating-rate i.e., Calvert Floating-rate and Columbia International go up and down completely randomly.

Pair Corralation between Calvert Floating-rate and Columbia International

Assuming the 90 days horizon Calvert Floating Rate Advantage is expected to generate 0.14 times more return on investment than Columbia International. However, Calvert Floating Rate Advantage is 7.32 times less risky than Columbia International. It trades about 0.24 of its potential returns per unit of risk. Columbia International Value is currently generating about -0.01 per unit of risk. If you would invest  881.00  in Calvert Floating Rate Advantage on October 27, 2024 and sell it today you would earn a total of  18.00  from holding Calvert Floating Rate Advantage or generate 2.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Calvert Floating Rate Advantag  vs.  Columbia International Value

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -8-6-4-2024
JavaScript chart by amCharts 3.21.15CFOAX CLVRX
       Timeline  
Calvert Floating Rate 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan8.858.98.95
Columbia International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Columbia International Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Columbia International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3232.53333.53434.53535.5

Calvert Floating-rate and Columbia International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.31-0.11-0.0688-0.0344-0.0017190.03460.07290.150.350.55 5101520
JavaScript chart by amCharts 3.21.15CFOAX CLVRX
       Returns  

Pair Trading with Calvert Floating-rate and Columbia International

The main advantage of trading using opposite Calvert Floating-rate and Columbia International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Floating-rate position performs unexpectedly, Columbia International 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 Columbia International will offset losses from the drop in Columbia International's long position.
The idea behind Calvert Floating Rate Advantage and Columbia International Value 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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