Correlation Between Calvert Equity and Calvert Small
Can any of the company-specific risk be diversified away by investing in both Calvert Equity and Calvert Small 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 Equity and Calvert Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Equity Portfolio and Calvert Small Cap, you can compare the effects of market volatilities on Calvert Equity and Calvert Small 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 Equity with a short position of Calvert Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Equity and Calvert Small.
Diversification Opportunities for Calvert Equity and Calvert Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and CALVERT is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Portfolio and Calvert Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Small Cap and Calvert Equity 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 Equity Portfolio are associated (or correlated) with Calvert Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Small Cap has no effect on the direction of Calvert Equity i.e., Calvert Equity and Calvert Small go up and down completely randomly.
Pair Corralation between Calvert Equity and Calvert Small
Assuming the 90 days horizon Calvert Equity Portfolio is expected to generate 0.74 times more return on investment than Calvert Small. However, Calvert Equity Portfolio is 1.36 times less risky than Calvert Small. It trades about 0.18 of its potential returns per unit of risk. Calvert Small Cap is currently generating about 0.13 per unit of risk. If you would invest 9,360 in Calvert Equity Portfolio on April 8, 2025 and sell it today you would earn a total of 527.00 from holding Calvert Equity Portfolio or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Equity Portfolio vs. Calvert Small Cap
Performance |
| Timeline |
| Calvert Equity Portfolio |
| Calvert Small Cap |
Calvert Equity and Calvert Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Equity and Calvert Small
The main advantage of trading using opposite Calvert Equity and Calvert Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Equity position performs unexpectedly, Calvert Small 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 Small will offset losses from the drop in Calvert Small's long position.| Calvert Equity vs. Tweedy Browne Global | Calvert Equity vs. Scharf Global Opportunity | Calvert Equity vs. Morningstar Global Income | Calvert Equity vs. Dodge Global Stock |
| Calvert Small vs. Energy Basic Materials | Calvert Small vs. Dreyfus Natural Resources | Calvert Small vs. Ivy Natural Resources | Calvert Small vs. World Energy 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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