Correlation Between Enphase Energy and Calvert Small
Can any of the company-specific risk be diversified away by investing in both Enphase Energy 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 Enphase Energy and Calvert Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enphase Energy and Calvert Small Cap, you can compare the effects of market volatilities on Enphase Energy 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 Enphase Energy with a short position of Calvert Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy and Calvert Small.
Diversification Opportunities for Enphase Energy and Calvert Small
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enphase and Calvert is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Enphase Energy 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 Enphase Energy 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 Enphase Energy 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 Enphase Energy i.e., Enphase Energy and Calvert Small go up and down completely randomly.
Pair Corralation between Enphase Energy and Calvert Small
Given the investment horizon of 90 days Enphase Energy is expected to under-perform the Calvert Small. In addition to that, Enphase Energy is 4.94 times more volatile than Calvert Small Cap. It trades about -0.02 of its total potential returns per unit of risk. Calvert Small Cap is currently generating about 0.05 per unit of volatility. If you would invest 3,276 in Calvert Small Cap on June 3, 2025 and sell it today you would earn a total of 99.00 from holding Calvert Small Cap or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enphase Energy vs. Calvert Small Cap
Performance |
| Timeline |
| Enphase Energy |
| Calvert Small Cap |
Enphase Energy and Calvert Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enphase Energy and Calvert Small
The main advantage of trading using opposite Enphase Energy and Calvert Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enphase Energy 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.| Enphase Energy vs. SolarEdge Technologies | Enphase Energy vs. First Solar | Enphase Energy vs. Sunrun Inc | Enphase Energy vs. Canadian Solar |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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