Correlation Between Mid Cap and Calvert International
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Calvert International Equity, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Calvert International.
Diversification Opportunities for Mid Cap and Calvert International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid and Calvert is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Mid Cap 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 Mid Cap Growth 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 Mid Cap i.e., Mid Cap and Calvert International go up and down completely randomly.
Pair Corralation between Mid Cap and Calvert International
Assuming the 90 days horizon Mid Cap is expected to generate 1.14 times less return on investment than Calvert International. But when comparing it to its historical volatility, Mid Cap Growth is 1.0 times less risky than Calvert International. It trades about 0.15 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,682 in Calvert International Equity on April 27, 2025 and sell it today you would earn a total of 70.00 from holding Calvert International Equity or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Calvert International Equity
Performance |
| Timeline |
| Mid Cap Growth |
| Calvert International |
Mid Cap and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Calvert International
The main advantage of trading using opposite Mid Cap and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.The idea behind Mid Cap Growth and Calvert International Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Calvert International vs. Europacific Growth Fund | Calvert International vs. Europacific Growth Fund | Calvert International vs. Europacific Growth Fund | Calvert International vs. Europacific Growth Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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