Correlation Between Calvert Large and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Calvert Large and Dow Jones 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 Large and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Large Cap and Dow Jones Industrial, you can compare the effects of market volatilities on Calvert Large and Dow Jones 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 Large with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and Dow Jones.
Diversification Opportunities for Calvert Large and Dow Jones
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calvert and Dow is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Calvert Large 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 Large Cap are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Calvert Large i.e., Calvert Large and Dow Jones go up and down completely randomly.
Pair Corralation between Calvert Large and Dow Jones
Assuming the 90 days horizon Calvert Large Cap is expected to generate 1.01 times more return on investment than Dow Jones. However, Calvert Large is 1.01 times more volatile than Dow Jones Industrial. It trades about 0.23 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.23 per unit of risk. If you would invest 3,131 in Calvert Large Cap on April 27, 2025 and sell it today you would earn a total of 373.00 from holding Calvert Large Cap or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Large Cap vs. Dow Jones Industrial
Performance |
| Timeline |
Calvert Large and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Calvert Large Cap
Pair trading matchups for Calvert Large
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Calvert Large and Dow Jones
The main advantage of trading using opposite Calvert Large and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Calvert Large vs. Artisan High Income | Calvert Large vs. Enhanced Fixed Income | Calvert Large vs. Intermediate Term Tax Free Bond | Calvert Large vs. The National Tax Free |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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