Correlation Between Calvert Small and Calvert Mid
Can any of the company-specific risk be diversified away by investing in both Calvert Small and Calvert Mid 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 Small and Calvert Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Small Cap and Calvert Mid Cap, you can compare the effects of market volatilities on Calvert Small and Calvert Mid 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 Small with a short position of Calvert Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Small and Calvert Mid.
Diversification Opportunities for Calvert Small and Calvert Mid
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Calvert is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Small Cap and Calvert Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Mid Cap and Calvert Small 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 Small Cap are associated (or correlated) with Calvert Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Mid Cap has no effect on the direction of Calvert Small i.e., Calvert Small and Calvert Mid go up and down completely randomly.
Pair Corralation between Calvert Small and Calvert Mid
Assuming the 90 days horizon Calvert Small is expected to generate 2.37 times less return on investment than Calvert Mid. But when comparing it to its historical volatility, Calvert Small Cap is 1.01 times less risky than Calvert Mid. It trades about 0.03 of its potential returns per unit of risk. Calvert Mid Cap is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,956 in Calvert Mid Cap on April 9, 2025 and sell it today you would earn a total of 359.00 from holding Calvert Mid Cap or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Small Cap vs. Calvert Mid Cap
Performance |
| Timeline |
| Calvert Small Cap |
| Calvert Mid Cap |
Calvert Small and Calvert Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Small and Calvert Mid
The main advantage of trading using opposite Calvert Small and Calvert Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Small position performs unexpectedly, Calvert Mid 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 Mid will offset losses from the drop in Calvert Mid's long position.| Calvert Small vs. Davis Financial Fund | Calvert Small vs. Mesirow Financial Small | Calvert Small vs. Prudential Financial Services | Calvert Small vs. 1919 Financial Services |
| Calvert Mid vs. Ultrasmall Cap Profund Ultrasmall Cap | Calvert Mid vs. Applied Finance Explorer | Calvert Mid vs. Mid Cap Profund Mid Cap | Calvert Mid vs. Vanguard Small Cap Value |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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