Correlation Between Calvert Global and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Calvert Short 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 Calvert Global and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Calvert Short Duration, you can compare the effects of market volatilities on Calvert Global and Calvert Short 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 Calvert Global with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Calvert Short.
Diversification Opportunities for Calvert Global and Calvert Short
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Calvert is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Calvert Global 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 Calvert Global Energy are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Calvert Global i.e., Calvert Global and Calvert Short go up and down completely randomly.
Pair Corralation between Calvert Global and Calvert Short
Assuming the 90 days horizon Calvert Global Energy is expected to generate 8.44 times more return on investment than Calvert Short. However, Calvert Global is 8.44 times more volatile than Calvert Short Duration. It trades about 0.4 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.14 per unit of risk. If you would invest 932.00 in Calvert Global Energy on April 8, 2025 and sell it today you would earn a total of 323.00 from holding Calvert Global Energy or generate 34.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Calvert Short Duration
Performance |
| Timeline |
| Calvert Global Energy |
| Calvert Short Duration |
Calvert Global and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Calvert Short
The main advantage of trading using opposite Calvert Global and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Calvert Short 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 Short will offset losses from the drop in Calvert Short's long position.| Calvert Global vs. Franklin Gold Precious | Calvert Global vs. First Eagle Gold | Calvert Global vs. Fidelity Advisor Gold | Calvert Global vs. Gabelli Gold Fund |
| Calvert Short vs. Franklin Natural Resources | Calvert Short vs. World Energy Fund | Calvert Short vs. Pimco Energy Tactical | Calvert Short vs. Calvert Global Energy |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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