Correlation Between World Energy and Calvert Global
Can any of the company-specific risk be diversified away by investing in both World Energy and Calvert Global 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 World Energy and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Energy Fund and Calvert Global Energy, you can compare the effects of market volatilities on World Energy and Calvert Global 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 World Energy with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Energy and Calvert Global.
Diversification Opportunities for World Energy and Calvert Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between World and Calvert is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding World Energy Fund and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and World Energy 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 World Energy Fund are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of World Energy i.e., World Energy and Calvert Global go up and down completely randomly.
Pair Corralation between World Energy and Calvert Global
Assuming the 90 days horizon World Energy is expected to generate 1.46 times less return on investment than Calvert Global. In addition to that, World Energy is 1.14 times more volatile than Calvert Global Energy. It trades about 0.11 of its total potential returns per unit of risk. Calvert Global Energy is currently generating about 0.18 per unit of volatility. If you would invest 1,262 in Calvert Global Energy on July 20, 2025 and sell it today you would earn a total of 134.00 from holding Calvert Global Energy or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
World Energy Fund vs. Calvert Global Energy
Performance |
| Timeline |
| World Energy |
| Calvert Global Energy |
World Energy and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Energy and Calvert Global
The main advantage of trading using opposite World Energy and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Energy position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.| World Energy vs. Putnam Global Health | World Energy vs. Deutsche Health And | World Energy vs. Alger Health Sciences | World Energy vs. Health Care Ultrasector |
| Calvert Global vs. Needham Growth Fund | Calvert Global vs. William Blair Emerging | Calvert Global vs. Blackrock 2037 Municipal | Calvert Global vs. Walden Asset Management |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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