Correlation Between Calvert High and Western Asset
Can any of the company-specific risk be diversified away by investing in both Calvert High and Western Asset 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 High and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert High Yield and Western Asset High, you can compare the effects of market volatilities on Calvert High and Western Asset 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 High with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Western Asset.
Diversification Opportunities for Calvert High and Western Asset
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Western is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Calvert High 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 High Yield are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Calvert High i.e., Calvert High and Western Asset go up and down completely randomly.
Pair Corralation between Calvert High and Western Asset
Assuming the 90 days horizon Calvert High is expected to generate 1.57 times less return on investment than Western Asset. But when comparing it to its historical volatility, Calvert High Yield is 1.23 times less risky than Western Asset. It trades about 0.07 of its potential returns per unit of risk. Western Asset High is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 699.00 in Western Asset High on December 1, 2024 and sell it today you would earn a total of 8.00 from holding Western Asset High or generate 1.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Calvert High Yield vs. Western Asset High
Performance |
Timeline |
Calvert High Yield |
Western Asset High |
Calvert High and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calvert High and Western Asset
The main advantage of trading using opposite Calvert High and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.Calvert High vs. John Hancock Variable | Calvert High vs. Metropolitan West Ultra | Calvert High vs. Touchstone Ultra Short | Calvert High vs. Transamerica Short Term Bond |
Western Asset vs. Touchstone Sands Capital | Western Asset vs. Profunds Large Cap Growth | Western Asset vs. T Rowe Price | Western Asset vs. The Hartford International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |