Correlation Between Calvert Global and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Templeton 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 Calvert Global and Templeton Global 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 Templeton Global Balanced, you can compare the effects of market volatilities on Calvert Global and Templeton 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 Calvert Global with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Templeton Global.
Diversification Opportunities for Calvert Global and Templeton Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Templeton is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Templeton Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Balanced 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Balanced has no effect on the direction of Calvert Global i.e., Calvert Global and Templeton Global go up and down completely randomly.
Pair Corralation between Calvert Global and Templeton Global
Assuming the 90 days horizon Calvert Global Energy is expected to generate 1.64 times more return on investment than Templeton Global. However, Calvert Global is 1.64 times more volatile than Templeton Global Balanced. It trades about 0.38 of its potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.37 per unit of risk. If you would invest 1,024 in Calvert Global Energy on April 17, 2025 and sell it today you would earn a total of 217.00 from holding Calvert Global Energy or generate 21.19% 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. Templeton Global Balanced
Performance |
| Timeline |
| Calvert Global Energy |
| Templeton Global Balanced |
Calvert Global and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Templeton Global
The main advantage of trading using opposite Calvert Global and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Templeton 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Calvert Global vs. Calvert Developed Market | Calvert Global vs. Calvert Developed Market | Calvert Global vs. Calvert Short Duration | Calvert Global vs. Calvert Short Duration |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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