Correlation Between Eventide Healthcare and Calvert Developed
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and Calvert Developed 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 Eventide Healthcare and Calvert Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eventide Healthcare Life and Calvert Developed Market, you can compare the effects of market volatilities on Eventide Healthcare and Calvert Developed 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 Eventide Healthcare with a short position of Calvert Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Calvert Developed.
Diversification Opportunities for Eventide Healthcare and Calvert Developed
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eventide and Calvert is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market and Eventide Healthcare 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 Eventide Healthcare Life are associated (or correlated) with Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Calvert Developed go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Calvert Developed
Assuming the 90 days horizon Eventide Healthcare Life is expected to generate 1.52 times more return on investment than Calvert Developed. However, Eventide Healthcare is 1.52 times more volatile than Calvert Developed Market. It trades about 0.29 of its potential returns per unit of risk. Calvert Developed Market is currently generating about 0.17 per unit of risk. If you would invest 3,538 in Eventide Healthcare Life on July 28, 2025 and sell it today you would earn a total of 817.00 from holding Eventide Healthcare Life or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Calvert Developed Market
Performance |
| Timeline |
| Eventide Healthcare Life |
| Calvert Developed Market |
Eventide Healthcare and Calvert Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Calvert Developed
The main advantage of trading using opposite Eventide Healthcare and Calvert Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Calvert Developed 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 Developed will offset losses from the drop in Calvert Developed's long position.| Eventide Healthcare vs. Vaughan Nelson Small | Eventide Healthcare vs. Vaughan Nelson Small | Eventide Healthcare vs. Calvert Emerging Markets | Eventide Healthcare vs. Johcm Emerging Markets |
| Calvert Developed vs. Calvert International Responsible | Calvert Developed vs. Calvert Developed Market | Calvert Developed vs. Wasatch Small Cap | Calvert Developed vs. Calvert Emerging Markets |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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