Correlation Between Calvert Large and Health Care
Can any of the company-specific risk be diversified away by investing in both Calvert Large and Health Care 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 Large and Health Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Large Cap E and Health Care Portfolio, you can compare the effects of market volatilities on Calvert Large and Health Care 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 Large with a short position of Health Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and Health Care.
Diversification Opportunities for Calvert Large and Health Care
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Health is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap E and Health Care Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Care Portfolio and Calvert Large 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 Large Cap E are associated (or correlated) with Health Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Care Portfolio has no effect on the direction of Calvert Large i.e., Calvert Large and Health Care go up and down completely randomly.
Pair Corralation between Calvert Large and Health Care
Assuming the 90 days horizon Calvert Large is expected to generate 2.21 times less return on investment than Health Care. But when comparing it to its historical volatility, Calvert Large Cap E is 1.35 times less risky than Health Care. It trades about 0.12 of its potential returns per unit of risk. Health Care Portfolio is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,590 in Health Care Portfolio on July 23, 2025 and sell it today you would earn a total of 320.00 from holding Health Care Portfolio or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Large Cap E vs. Health Care Portfolio
Performance |
| Timeline |
| Calvert Large Cap |
| Health Care Portfolio |
Calvert Large and Health Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Large and Health Care
The main advantage of trading using opposite Calvert Large and Health Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large position performs unexpectedly, Health Care 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 Health Care will offset losses from the drop in Health Care's long position.| Calvert Large vs. Health Care Portfolio | Calvert Large vs. Heritage Fund Investor | Calvert Large vs. Permanent Portfolio Class | Calvert Large vs. Jpmorgan Mid Cap |
| Health Care vs. Blackrock Health Sciences | Health Care vs. Blackrock Health Sciences | Health Care vs. Blackrock Health Sciences | Health Care vs. Blackrock Health Sciences |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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