Correlation Between Calvert Global and Knights Of
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Knights Of 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 Knights Of 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 Knights Of Umbus, you can compare the effects of market volatilities on Calvert Global and Knights Of 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 Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Knights Of.
Diversification Opportunities for Calvert Global and Knights Of
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Knights is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Knights Of Umbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Umbus 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 Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Umbus has no effect on the direction of Calvert Global i.e., Calvert Global and Knights Of go up and down completely randomly.
Pair Corralation between Calvert Global and Knights Of
Assuming the 90 days horizon Calvert Global Energy is expected to generate 1.25 times more return on investment than Knights Of. However, Calvert Global is 1.25 times more volatile than Knights Of Umbus. It trades about 0.27 of its potential returns per unit of risk. Knights Of Umbus is currently generating about 0.25 per unit of risk. If you would invest 1,147 in Calvert Global Energy on May 28, 2025 and sell it today you would earn a total of 174.00 from holding Calvert Global Energy or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Knights Of Umbus
Performance |
| Timeline |
| Calvert Global Energy |
| Knights Of Umbus |
Calvert Global and Knights Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Knights Of
The main advantage of trading using opposite Calvert Global and Knights Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Knights Of 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 Knights Of will offset losses from the drop in Knights Of's long position.| Calvert Global vs. Jennison Natural Resources | Calvert Global vs. Icon Natural Resources | Calvert Global vs. Vanguard Energy Index | Calvert Global vs. Clearbridge Energy Mlp |
| Knights Of vs. Goldman Sachs Government | Knights Of vs. Wesmark Government Bond | Knights Of vs. Aig Government Money | Knights Of vs. Jpmorgan Government Bond |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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