Correlation Between Calvert Emerging and Catalystwarrington

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

By analyzing existing cross correlation between Calvert Emerging Markets and Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Calvert Emerging and Catalystwarrington 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 Emerging with a short position of Catalystwarrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Catalystwarrington.

Diversification Opportunities for Calvert Emerging and Catalystwarrington

-0.81

Correlation Coefficient

Calvert Emerging  Catalystwarrington

Pay attention - limited upside

The 3 months correlation between Calvert and Catalystwarrington is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystwarrington and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Catalystwarrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystwarrington has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Catalystwarrington go up and down completely randomly.

Pair Corralation between Calvert Emerging and Catalystwarrington

Assuming the 90 days horizon Calvert Emerging Markets is expected to under-perform the Catalystwarrington. In addition to that, Calvert Emerging is 17.94 times more volatile than Catalystwarrington Strategic Program. It trades about -0.12 of its total potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.24 per unit of volatility. If you would invest  925.00  in Catalystwarrington Strategic Program on October 23, 2024 and sell it today you would lose (2.00) from holding Catalystwarrington Strategic Program or give up 0.22% of portfolio value over 90 days.

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

Calvert Emerging Markets  vs.  Catalystwarrington Strategic P

Calvert Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Catalystwarrington

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystwarrington Strategic Program are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Catalystwarrington 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 Emerging and Catalystwarrington

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

The idea behind Calvert Emerging Markets and Catalystwarrington Strategic Program 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.