Correlation Between Calvert Developed and Defensive Market
Can any of the company-specific risk be diversified away by investing in both Calvert Developed and Defensive Market 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 Defensive Market 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 Defensive Market Strategies, you can compare the effects of market volatilities on Calvert Developed and Defensive Market 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 Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Defensive Market.
Diversification Opportunities for Calvert Developed and Defensive Market
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Defensive is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str 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 Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of Calvert Developed i.e., Calvert Developed and Defensive Market go up and down completely randomly.
Pair Corralation between Calvert Developed and Defensive Market
Assuming the 90 days horizon Calvert Developed Market is expected to generate 1.78 times more return on investment than Defensive Market. However, Calvert Developed is 1.78 times more volatile than Defensive Market Strategies. It trades about 0.26 of its potential returns per unit of risk. Defensive Market Strategies is currently generating about 0.32 per unit of risk. If you would invest 3,190 in Calvert Developed Market on April 25, 2025 and sell it today you would earn a total of 383.00 from holding Calvert Developed Market or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Calvert Developed Market vs. Defensive Market Strategies
Performance |
| Timeline |
| Calvert Developed Market |
| Defensive Market Str |
Calvert Developed and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Defensive Market
The main advantage of trading using opposite Calvert Developed and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market'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 |
| Defensive Market vs. Gamco Natural Resources | Defensive Market vs. Icon Natural Resources | Defensive Market vs. Adams Natural Resources | Defensive Market vs. Global Resources Fund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |