Correlation Between Rbc China and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Rbc China and Calvert Emerging 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 Rbc China and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc China Equity and Calvert Emerging Markets, you can compare the effects of market volatilities on Rbc China and Calvert Emerging 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 Rbc China with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc China and Calvert Emerging.
Diversification Opportunities for Rbc China and Calvert Emerging
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rbc and Calvert is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rbc China Equity and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets and Rbc China 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 Rbc China Equity are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Rbc China i.e., Rbc China and Calvert Emerging go up and down completely randomly.
Pair Corralation between Rbc China and Calvert Emerging
Assuming the 90 days horizon Rbc China Equity is expected to generate 1.77 times more return on investment than Calvert Emerging. However, Rbc China is 1.77 times more volatile than Calvert Emerging Markets. It trades about 0.27 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.19 per unit of risk. If you would invest 1,052 in Rbc China Equity on May 31, 2025 and sell it today you would earn a total of 74.00 from holding Rbc China Equity or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbc China Equity vs. Calvert Emerging Markets
Performance |
| Timeline |
| Rbc China Equity |
| Calvert Emerging Markets |
Rbc China and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc China and Calvert Emerging
The main advantage of trading using opposite Rbc China and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc China position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.| Rbc China vs. Leuthold Global Fund | Rbc China vs. Asg Global Alternatives | Rbc China vs. Legg Mason Global | Rbc China vs. The Hartford Global |
| Calvert Emerging vs. Aew Real Estate | Calvert Emerging vs. Prudential Real Estate | Calvert Emerging vs. Forum Real Estate | Calvert Emerging vs. Cohen Steers Real |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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