Correlation Between Bitcoin and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Bitcoin 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 Bitcoin and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Calvert Global Water, you can compare the effects of market volatilities on Bitcoin 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 Bitcoin with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Calvert Global.
Diversification Opportunities for Bitcoin and Calvert Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Calvert Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Water and Bitcoin 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 Bitcoin 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 Water has no effect on the direction of Bitcoin i.e., Bitcoin and Calvert Global go up and down completely randomly.
Pair Corralation between Bitcoin and Calvert Global
Assuming the 90 days trading horizon Bitcoin is expected to generate 2.95 times more return on investment than Calvert Global. However, Bitcoin is 2.95 times more volatile than Calvert Global Water. It trades about 0.13 of its potential returns per unit of risk. Calvert Global Water is currently generating about 0.28 per unit of risk. If you would invest 9,705,227 in Bitcoin on April 6, 2025 and sell it today you would earn a total of 1,113,373 from holding Bitcoin or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 93.33% |
| Values | Daily Returns |
Bitcoin vs. Calvert Global Water
Performance |
| Timeline |
| Bitcoin |
| Calvert Global Water |
Bitcoin and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Calvert Global
The main advantage of trading using opposite Bitcoin and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin 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.The idea behind Bitcoin and Calvert Global Water 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.| Calvert Global vs. Lsv Small Cap | Calvert Global vs. Fidelity Small Cap | Calvert Global vs. Northern Small Cap | Calvert Global vs. Queens Road Small |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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