Correlation Between DXC Technology and Calvert Small
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Calvert 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 DXC Technology and Calvert Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Calvert Small Cap, you can compare the effects of market volatilities on DXC Technology and Calvert 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 DXC Technology with a short position of Calvert Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Calvert Small.
Diversification Opportunities for DXC Technology and Calvert Small
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DXC and Calvert is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Calvert Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Small Cap and DXC Technology 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 DXC Technology Co are associated (or correlated) with Calvert Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Small Cap has no effect on the direction of DXC Technology i.e., DXC Technology and Calvert Small go up and down completely randomly.
Pair Corralation between DXC Technology and Calvert Small
Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the Calvert Small. In addition to that, DXC Technology is 2.4 times more volatile than Calvert Small Cap. It trades about -0.07 of its total potential returns per unit of risk. Calvert Small Cap is currently generating about 0.02 per unit of volatility. If you would invest 3,288 in Calvert Small Cap on May 24, 2025 and sell it today you would earn a total of 24.00 from holding Calvert Small Cap or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. Calvert Small Cap
Performance |
| Timeline |
| DXC Technology |
| Calvert Small Cap |
DXC Technology and Calvert Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Calvert Small
The main advantage of trading using opposite DXC Technology and Calvert Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Calvert 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 Calvert Small will offset losses from the drop in Calvert Small's long position.| DXC Technology vs. Gartner | DXC Technology vs. CDW Corp | DXC Technology vs. Cognizant Technology Solutions | DXC Technology vs. Fidelity National Information |
| Calvert Small vs. Calvert International Equity | Calvert Small vs. Calvert Equity Portfolio | Calvert Small vs. Calvert Capital Accumulation | Calvert Small vs. Calvert Large Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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