Correlation Between Calvert Developed and Intermediate Government
Can any of the company-specific risk be diversified away by investing in both Calvert Developed and Intermediate Government 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 Developed and Intermediate Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Developed Market and Intermediate Government Bond, you can compare the effects of market volatilities on Calvert Developed and Intermediate Government 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 Developed with a short position of Intermediate Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Intermediate Government.
Diversification Opportunities for Calvert Developed and Intermediate Government
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Intermediate is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Intermediate Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Government and Calvert Developed 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 Developed Market are associated (or correlated) with Intermediate Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Government has no effect on the direction of Calvert Developed i.e., Calvert Developed and Intermediate Government go up and down completely randomly.
Pair Corralation between Calvert Developed and Intermediate Government
Assuming the 90 days horizon Calvert Developed Market is expected to generate 11.23 times more return on investment than Intermediate Government. However, Calvert Developed is 11.23 times more volatile than Intermediate Government Bond. It trades about 0.08 of its potential returns per unit of risk. Intermediate Government Bond is currently generating about 0.13 per unit of risk. If you would invest 3,189 in Calvert Developed Market on March 22, 2025 and sell it today you would earn a total of 224.00 from holding Calvert Developed Market or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Developed Market vs. Intermediate Government Bond
Performance |
| Timeline |
| Calvert Developed Market |
| Intermediate Government |
Calvert Developed and Intermediate Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Intermediate Government
The main advantage of trading using opposite Calvert Developed and Intermediate Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed position performs unexpectedly, Intermediate Government 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 Intermediate Government will offset losses from the drop in Intermediate Government's long position.| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
| Intermediate Government vs. City National Rochdale | Intermediate Government vs. Legg Mason Partners | Intermediate Government vs. Janus Investment | Intermediate Government vs. T Rowe Price |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance |