Correlation Between Microsoft and Calvert Fund
Can any of the company-specific risk be diversified away by investing in both Microsoft and Calvert Fund 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 Microsoft and Calvert Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Calvert Fund , you can compare the effects of market volatilities on Microsoft and Calvert Fund 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 Microsoft with a short position of Calvert Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Calvert Fund.
Diversification Opportunities for Microsoft and Calvert Fund
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microsoft and Calvert is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Calvert Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Fund and Microsoft 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 Microsoft are associated (or correlated) with Calvert Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Fund has no effect on the direction of Microsoft i.e., Microsoft and Calvert Fund go up and down completely randomly.
Pair Corralation between Microsoft and Calvert Fund
If you would invest 41,879 in Microsoft on September 25, 2024 and sell it today you would earn a total of 2,054 from holding Microsoft or generate 4.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Microsoft vs. Calvert Fund
Performance |
Timeline |
Microsoft |
Calvert Fund |
Microsoft and Calvert Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Calvert Fund
The main advantage of trading using opposite Microsoft and Calvert Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Calvert Fund 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 Fund will offset losses from the drop in Calvert Fund's long position.Microsoft vs. BlackBerry | Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta |
Calvert Fund vs. Calvert Developed Market | Calvert Fund vs. Calvert Developed Market | Calvert Fund vs. Calvert Short Duration | Calvert Fund vs. Calvert International Responsible |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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