Correlation Between Calvert International and Touchstone International
Can any of the company-specific risk be diversified away by investing in both Calvert International and Touchstone International 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 International and Touchstone International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert International Equity and Touchstone International Equity, you can compare the effects of market volatilities on Calvert International and Touchstone International 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 International with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Touchstone International.
Diversification Opportunities for Calvert International and Touchstone International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Touchstone is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Calvert International 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 International Equity are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Calvert International i.e., Calvert International and Touchstone International go up and down completely randomly.
Pair Corralation between Calvert International and Touchstone International
Assuming the 90 days horizon Calvert International is expected to generate 3.43 times less return on investment than Touchstone International. In addition to that, Calvert International is 1.06 times more volatile than Touchstone International Equity. It trades about 0.08 of its total potential returns per unit of risk. Touchstone International Equity is currently generating about 0.28 per unit of volatility. If you would invest 1,713 in Touchstone International Equity on April 22, 2025 and sell it today you would earn a total of 66.00 from holding Touchstone International Equity or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calvert International Equity vs. Touchstone International Equit
Performance |
| Timeline |
| Calvert International |
| Touchstone International |
Calvert International and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Touchstone International
The main advantage of trading using opposite Calvert International and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Calvert International vs. Transamerica Capital Growth | Calvert International vs. Mid Cap Growth | Calvert International vs. Needham Aggressive Growth | Calvert International vs. Praxis Genesis Growth |
| Touchstone International vs. Ab Bond Inflation | Touchstone International vs. Artisan High Income | Touchstone International vs. Ab Bond Inflation | Touchstone International vs. Ambrus Core Bond |
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.
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