Correlation Between Calvert Equity and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Calvert Equity 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 Equity 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 Equity Portfolio and Dow Jones Industrial, you can compare the effects of market volatilities on Calvert Equity 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 Equity with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Equity and Dow Jones.
Diversification Opportunities for Calvert Equity and Dow Jones
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CALVERT and Dow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Portfolio 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 Equity 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 Equity Portfolio 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 Equity i.e., Calvert Equity and Dow Jones go up and down completely randomly.
Pair Corralation between Calvert Equity and Dow Jones
Assuming the 90 days horizon Calvert Equity is expected to generate 3.86 times less return on investment than Dow Jones. In addition to that, Calvert Equity is 1.02 times more volatile than Dow Jones Industrial. It trades about 0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of volatility. If you would invest 4,276,176 in Dow Jones Industrial on June 8, 2025 and sell it today you would earn a total of 263,910 from holding Dow Jones Industrial or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Equity Portfolio vs. Dow Jones Industrial
Performance |
| Timeline |
Calvert Equity and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Calvert Equity Portfolio
Pair trading matchups for Calvert Equity
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Calvert Equity and Dow Jones
The main advantage of trading using opposite Calvert Equity and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Equity 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 Equity vs. Simt Real Estate | Calvert Equity vs. Baron Real Estate | Calvert Equity vs. Nomura Real Estate | Calvert Equity vs. Tiaa Cref Real Estate |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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