Correlation Between Cref Money and Calvert Emerging

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Can any of the company-specific risk be diversified away by investing in both Cref Money and Calvert Emerging 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 Cref Money and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Calvert Emerging Markets, you can compare the effects of market volatilities on Cref Money and Calvert Emerging 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 Cref Money with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Calvert Emerging.

Diversification Opportunities for Cref Money and Calvert Emerging

-0.89
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cref and Calvert is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets and Cref Money 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 Cref Money Market are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Cref Money i.e., Cref Money and Calvert Emerging go up and down completely randomly.

Pair Corralation between Cref Money and Calvert Emerging

Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.03 times more return on investment than Calvert Emerging. However, Cref Money Market is 37.28 times less risky than Calvert Emerging. It trades about 0.8 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest  2,709  in Cref Money Market on October 10, 2024 and sell it today you would earn a total of  276.00  from holding Cref Money Market or generate 10.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy97.17%
ValuesDaily Returns

Cref Money Market  vs.  Calvert Emerging Markets

 Performance 
       Timeline  
Cref Money Market 

Risk-Adjusted Performance

82 of 100

 
Weak
 
Strong
Market Crasher
Compared to the overall equity markets, risk-adjusted returns on investments in Cref Money Market are ranked lower than 82 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Cref Money is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Calvert Emerging Markets 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Cref Money and Calvert Emerging Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cref Money and Calvert Emerging

The main advantage of trading using opposite Cref Money and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.
The idea behind Cref Money Market and Calvert Emerging Markets 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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