Correlation Between Calvert Emerging and Touchstone Small
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Touchstone 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 Emerging and Touchstone Small 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 Touchstone Small Cap, you can compare the effects of market volatilities on Calvert Emerging and Touchstone 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 Emerging with a short position of Touchstone Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Touchstone Small.
Diversification Opportunities for Calvert Emerging and Touchstone Small
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Touchstone is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Touchstone Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Small Cap 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 Touchstone Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Cap has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Touchstone Small go up and down completely randomly.
Pair Corralation between Calvert Emerging and Touchstone Small
Assuming the 90 days horizon Calvert Emerging is expected to generate 6.04 times less return on investment than Touchstone Small. But when comparing it to its historical volatility, Calvert Emerging Markets is 1.28 times less risky than Touchstone Small. It trades about 0.03 of its potential returns per unit of risk. Touchstone Small Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,725 in Touchstone Small Cap on June 11, 2025 and sell it today you would earn a total of 382.00 from holding Touchstone Small Cap or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Touchstone Small Cap
Performance |
| Timeline |
| Calvert Emerging Markets |
| Touchstone Small Cap |
Calvert Emerging and Touchstone Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Touchstone Small
The main advantage of trading using opposite Calvert Emerging and Touchstone Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Touchstone 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 Touchstone Small will offset losses from the drop in Touchstone Small's long position.| Calvert Emerging vs. Touchstone Small Cap | Calvert Emerging vs. Sp Smallcap 600 | Calvert Emerging vs. Nuveen Nwq Smallmid Cap | Calvert Emerging vs. Foundry Partners Fundamental |
| Touchstone Small vs. Angel Oak Multi Strategy | Touchstone Small vs. Franklin Emerging Market | Touchstone Small vs. Western Assets Emerging | Touchstone Small vs. The Hartford Emerging |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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