Correlation Between Calvert International and Ab Bond

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Calvert International and Ab 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 Calvert International and Ab Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert International Equity and Ab Bond Inflation, you can compare the effects of market volatilities on Calvert International and Ab 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 Calvert International with a short position of Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Ab Bond.

Diversification Opportunities for Calvert International and Ab Bond

CalvertABNTXDiversified AwayCalvertABNTXDiversified Away100%
0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Calvert and ABNTX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation and Calvert International 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 International Equity are associated (or correlated) with Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Calvert International i.e., Calvert International and Ab Bond go up and down completely randomly.

Pair Corralation between Calvert International and Ab Bond

Assuming the 90 days horizon Calvert International Equity is expected to generate 2.99 times more return on investment than Ab Bond. However, Calvert International is 2.99 times more volatile than Ab Bond Inflation. It trades about 0.03 of its potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.06 per unit of risk. If you would invest  2,188  in Calvert International Equity on October 20, 2024 and sell it today you would earn a total of  204.00  from holding Calvert International Equity or generate 9.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Calvert International Equity  vs.  Ab Bond Inflation

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -6-4-20
JavaScript chart by amCharts 3.21.15CIESX ABNTX
       Timeline  
Calvert International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Calvert International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calvert 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 3.21.15NovDecJanDecJan2424.52525.5
Ab Bond Inflation 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ab Bond Inflation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab Bond 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 3.21.15NovDecJanDecJan1010.0210.0410.0610.0810.110.1210.14

Calvert International and Ab Bond Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.34-1.01-0.68-0.35-0.05590.10.430.761.091.42 246810
JavaScript chart by amCharts 3.21.15CIESX ABNTX
       Returns  

Pair Trading with Calvert International and Ab Bond

The main advantage of trading using opposite Calvert International and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Ab 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 Ab Bond will offset losses from the drop in Ab Bond's long position.
The idea behind Calvert International Equity and Ab Bond Inflation 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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.


 

Discover investing ideas

Utilize additional investing modules