Correlation Between Aqr Large and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Aqr Large 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 Aqr Large and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Calvert Global Energy, you can compare the effects of market volatilities on Aqr Large 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 Aqr Large with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Calvert Global.
Diversification Opportunities for Aqr Large and Calvert Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Calvert is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Aqr Large 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 Aqr Large 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 Energy has no effect on the direction of Aqr Large i.e., Aqr Large and Calvert Global go up and down completely randomly.
Pair Corralation between Aqr Large and Calvert Global
Assuming the 90 days horizon Aqr Large is expected to generate 1.39 times less return on investment than Calvert Global. But when comparing it to its historical volatility, Aqr Large Cap is 1.42 times less risky than Calvert Global. It trades about 0.18 of its potential returns per unit of risk. Calvert Global Energy is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Calvert Global Energy on June 7, 2025 and sell it today you would earn a total of 120.00 from holding Calvert Global Energy or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. Calvert Global Energy
Performance |
| Timeline |
| Aqr Large Cap |
| Calvert Global Energy |
Aqr Large and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Calvert Global
The main advantage of trading using opposite Aqr Large and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large 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.| Aqr Large vs. Disciplined Growth Fund | Aqr Large vs. Invesco Disciplined Equity | Aqr Large vs. Select Fund A |
| Calvert Global vs. Great West Moderately Aggressive | Calvert Global vs. Saat Moderate Strategy | Calvert Global vs. Mainstay Moderate Growth | Calvert Global vs. Wealthbuilder Moderate Balanced |
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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