Correlation Between Calvert Emerging and Great-west
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Great-west 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 Emerging and Great-west into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Emerging Markets and Great West Government Mortgage, you can compare the effects of market volatilities on Calvert Emerging and Great-west 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 Emerging with a short position of Great-west. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Great-west.
Diversification Opportunities for Calvert Emerging and Great-west
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Great-west is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Great West Government Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Government and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Great-west. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Government has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Great-west go up and down completely randomly.
Pair Corralation between Calvert Emerging and Great-west
Assuming the 90 days horizon Calvert Emerging Markets is expected to generate 4.28 times more return on investment than Great-west. However, Calvert Emerging is 4.28 times more volatile than Great West Government Mortgage. It trades about 0.15 of its potential returns per unit of risk. Great West Government Mortgage is currently generating about 0.11 per unit of risk. If you would invest 1,233 in Calvert Emerging Markets on September 5, 2025 and sell it today you would earn a total of 98.00 from holding Calvert Emerging Markets or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Great West Government Mortgage
Performance |
| Timeline |
| Calvert Emerging Markets |
| Great West Government |
Calvert Emerging and Great-west Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Great-west
The main advantage of trading using opposite Calvert Emerging and Great-west positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Great-west 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 Great-west will offset losses from the drop in Great-west's long position.| Calvert Emerging vs. Aew Real Estate | Calvert Emerging vs. Tiaa Cref Real Estate | Calvert Emerging vs. Virtus Real Estate | Calvert Emerging vs. Franklin Real Estate |
| Great-west vs. Gmo High Yield | Great-west vs. Vanguard High Yield Tax Exempt | Great-west vs. Georgia Tax Free Bond | Great-west vs. Nuveen High Yield |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |