Correlation Between Calvert High and Calvert International
Can any of the company-specific risk be diversified away by investing in both Calvert High and Calvert International 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 High and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert High Yield and Calvert International Equity, you can compare the effects of market volatilities on Calvert High and Calvert International 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 High with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Calvert International.
Diversification Opportunities for Calvert High and Calvert International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Calvert is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Calvert High 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 High Yield are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Calvert High i.e., Calvert High and Calvert International go up and down completely randomly.
Pair Corralation between Calvert High and Calvert International
Assuming the 90 days horizon Calvert High is expected to generate 2.9 times less return on investment than Calvert International. But when comparing it to its historical volatility, Calvert High Yield is 4.48 times less risky than Calvert International. It trades about 0.35 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,879 in Calvert International Equity on April 16, 2025 and sell it today you would earn a total of 209.00 from holding Calvert International Equity or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert High Yield vs. Calvert International Equity
Performance |
| Timeline |
| Calvert High Yield |
| Calvert International |
Calvert High and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Calvert International
The main advantage of trading using opposite Calvert High and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| Calvert High vs. Americafirst Monthly Risk On | Calvert High vs. Fidelity American High | Calvert High vs. Needham Aggressive Growth | Calvert High vs. Ab High Income |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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