Correlation Between City National and Calvert International
Can any of the company-specific risk be diversified away by investing in both City National and Calvert International 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 City National and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Calvert International Equity, you can compare the effects of market volatilities on City National and Calvert International 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 City National with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Calvert International.
Diversification Opportunities for City National and Calvert International
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Calvert is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and City National 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 City National Rochdale are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of City National i.e., City National and Calvert International go up and down completely randomly.
Pair Corralation between City National and Calvert International
Assuming the 90 days horizon City National is expected to generate 2.39 times less return on investment than Calvert International. But when comparing it to its historical volatility, City National Rochdale is 9.75 times less risky than Calvert International. It trades about 0.59 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,977 in Calvert International Equity on April 30, 2025 and sell it today you would earn a total of 142.00 from holding Calvert International Equity or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Calvert International Equity
Performance |
| Timeline |
| City National Rochdale |
| Calvert International |
City National and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Calvert International
The main advantage of trading using opposite City National and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| City National vs. Ms Global Fixed | City National vs. Barings Global Floating | City National vs. Mirova Global Sustainable | City National vs. Qs Global Equity |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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