Correlation Between Calvert Fund and Calvert Ultra-short

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

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

Diversification Opportunities for Calvert Fund and Calvert Ultra-short

0.0

Correlation Coefficient

Calvert Fund  Calvert Ultra-short

Pay attention - limited upside

The 3 months correlation between Calvert and Calvert is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Fund and Calvert Ultra Short Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Ultra Short and Calvert Fund 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 Fund are associated (or correlated) with Calvert Ultra-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Ultra Short has no effect on the direction of Calvert Fund i.e., Calvert Fund and Calvert Ultra-short go up and down completely randomly.

Pair Corralation between Calvert Fund and Calvert Ultra-short

If you would invest  979.00  in Calvert Ultra Short Income on December 27, 2024 and sell it today you would earn a total of  11.00  from holding Calvert Ultra Short Income or generate 1.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Calvert Fund   vs.  Calvert Ultra Short Income

Calvert Fund

Risk-Adjusted Performance

Very Weak

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

Calvert Ultra Short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Ultra Short Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Ultra-short 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 Fund and Calvert Ultra-short

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

The idea behind Calvert Fund and Calvert Ultra Short Income 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.