Correlation Between Fidelity Small and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Fidelity Small and Calvert Global 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 Fidelity Small and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Calvert Global Equity, you can compare the effects of market volatilities on Fidelity Small and Calvert Global 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 Fidelity Small with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Calvert Global.
Diversification Opportunities for Fidelity Small and Calvert Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Calvert is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Calvert Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Equity and Fidelity Small 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 Fidelity Small Cap are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Equity has no effect on the direction of Fidelity Small i.e., Fidelity Small and Calvert Global go up and down completely randomly.
Pair Corralation between Fidelity Small and Calvert Global
Assuming the 90 days horizon Fidelity Small is expected to generate 1.08 times less return on investment than Calvert Global. In addition to that, Fidelity Small is 1.57 times more volatile than Calvert Global Equity. It trades about 0.2 of its total potential returns per unit of risk. Calvert Global Equity is currently generating about 0.33 per unit of volatility. If you would invest 1,547 in Calvert Global Equity on April 22, 2025 and sell it today you would earn a total of 259.00 from holding Calvert Global Equity or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Small Cap vs. Calvert Global Equity
Performance |
| Timeline |
| Fidelity Small Cap |
| Calvert Global Equity |
Fidelity Small and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Calvert Global
The main advantage of trading using opposite Fidelity Small and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.| Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Mid Cap | Fidelity Small vs. Fidelity Advisor Value |
| Calvert Global vs. California Municipal Portfolio | Calvert Global vs. Morningstar Municipal Bond | Calvert Global vs. Intermediate Term Tax Free Bond | Calvert Global vs. Alpine Ultra Short |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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