Correlation Between Scout Core and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Scout Core 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 Scout Core and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout E Bond and Calvert Global Equity, you can compare the effects of market volatilities on Scout Core 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 Scout Core with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Core and Calvert Global.
Diversification Opportunities for Scout Core and Calvert Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scout and Calvert is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Scout E Bond 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 Scout Core 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 Scout E Bond 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 Scout Core i.e., Scout Core and Calvert Global go up and down completely randomly.
Pair Corralation between Scout Core and Calvert Global
Assuming the 90 days horizon Scout Core is expected to generate 8.8 times less return on investment than Calvert Global. But when comparing it to its historical volatility, Scout E Bond is 2.44 times less risky than Calvert Global. It trades about 0.1 of its potential returns per unit of risk. Calvert Global Equity is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,517 in Calvert Global Equity on April 18, 2025 and sell it today you would earn a total of 286.00 from holding Calvert Global Equity or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Scout E Bond vs. Calvert Global Equity
Performance |
| Timeline |
| Scout E Bond |
| Calvert Global Equity |
Scout Core and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout Core and Calvert Global
The main advantage of trading using opposite Scout Core and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Core 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.| Scout Core vs. Victory Diversified Stock | Scout Core vs. Voya Solution Conservative | Scout Core vs. Wells Fargo Diversified | Scout Core vs. Calvert Conservative Allocation |
| Calvert Global vs. Barings High Yield | Calvert Global vs. Siit High Yield | Calvert Global vs. Payden High Income | Calvert Global vs. Transamerica High Yield |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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