Correlation Between Growth Strategy and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Growth Strategy and Calvert 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 Growth Strategy and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Calvert Bond Portfolio, you can compare the effects of market volatilities on Growth Strategy and Calvert 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 Growth Strategy with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Calvert Bond.
Diversification Opportunities for Growth Strategy and Calvert Bond
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Growth and Calvert is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Growth Strategy i.e., Growth Strategy and Calvert Bond go up and down completely randomly.
Pair Corralation between Growth Strategy and Calvert Bond
Assuming the 90 days horizon Growth Strategy Fund is expected to under-perform the Calvert Bond. In addition to that, Growth Strategy is 2.26 times more volatile than Calvert Bond Portfolio. It trades about -0.06 of its total potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.06 per unit of volatility. If you would invest 1,449 in Calvert Bond Portfolio on December 2, 2024 and sell it today you would earn a total of 15.00 from holding Calvert Bond Portfolio or generate 1.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Growth Strategy Fund vs. Calvert Bond Portfolio
Performance |
Timeline |
Growth Strategy |
Calvert Bond Portfolio |
Growth Strategy and Calvert Bond Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Growth Strategy and Calvert Bond
The main advantage of trading using opposite Growth Strategy and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy position performs unexpectedly, Calvert 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.Growth Strategy vs. Ab Bond Inflation | Growth Strategy vs. Scout E Bond | Growth Strategy vs. Versatile Bond Portfolio | Growth Strategy vs. Nationwide Bond Index |
Calvert Bond vs. Aqr Risk Parity | Calvert Bond vs. Prudential High Yield | Calvert Bond vs. Ab High Income | Calvert Bond vs. Metropolitan West High |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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