Correlation Between Calvert Small/mid-cap and Calvert Large
Can any of the company-specific risk be diversified away by investing in both Calvert Small/mid-cap and Calvert Large 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 Small/mid-cap and Calvert Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Smallmid Cap A and Calvert Large Cap, you can compare the effects of market volatilities on Calvert Small/mid-cap and Calvert Large 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 Small/mid-cap with a short position of Calvert Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Small/mid-cap and Calvert Large.
Diversification Opportunities for Calvert Small/mid-cap and Calvert Large
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Smallmid Cap A and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Calvert Small/mid-cap 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 Smallmid Cap A are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Calvert Small/mid-cap i.e., Calvert Small/mid-cap and Calvert Large go up and down completely randomly.
Pair Corralation between Calvert Small/mid-cap and Calvert Large
Assuming the 90 days horizon Calvert Small/mid-cap is expected to generate 2.98 times less return on investment than Calvert Large. In addition to that, Calvert Small/mid-cap is 1.37 times more volatile than Calvert Large Cap. It trades about 0.03 of its total potential returns per unit of risk. Calvert Large Cap is currently generating about 0.14 per unit of volatility. If you would invest 3,336 in Calvert Large Cap on June 12, 2025 and sell it today you would earn a total of 206.00 from holding Calvert Large Cap or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Smallmid Cap A vs. Calvert Large Cap
Performance |
| Timeline |
| Calvert Small/mid-cap |
| Calvert Large Cap |
Calvert Small/mid-cap and Calvert Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Small/mid-cap and Calvert Large
The main advantage of trading using opposite Calvert Small/mid-cap and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Small/mid-cap position performs unexpectedly, Calvert Large 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 Large will offset losses from the drop in Calvert Large's long position.| Calvert Small/mid-cap vs. Ep Emerging Markets | Calvert Small/mid-cap vs. Delaware Emerging Markets | Calvert Small/mid-cap vs. Fidelity Series Emerging | Calvert Small/mid-cap vs. Ashmore Emerging Markets |
| Calvert Large vs. Gabelli Convertible And | Calvert Large vs. Rationalpier 88 Convertible | Calvert Large vs. Columbia Convertible Securities | Calvert Large vs. Allianzgi Convertible Income |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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