Correlation Between Scout Small and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Scout Small 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 Small 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 Small Cap and Calvert Global Equity, you can compare the effects of market volatilities on Scout Small 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 Small with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Small and Calvert Global.
Diversification Opportunities for Scout Small and Calvert Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Scout and Calvert is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Scout Small Cap 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 Small 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 Small 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 Equity has no effect on the direction of Scout Small i.e., Scout Small and Calvert Global go up and down completely randomly.
Pair Corralation between Scout Small and Calvert Global
Assuming the 90 days horizon Scout Small Cap is expected to generate 1.38 times more return on investment than Calvert Global. However, Scout Small is 1.38 times more volatile than Calvert Global Equity. It trades about 0.36 of its potential returns per unit of risk. Calvert Global Equity is currently generating about 0.21 per unit of risk. If you would invest 2,677 in Scout Small Cap on April 2, 2025 and sell it today you would earn a total of 186.00 from holding Scout Small Cap or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Scout Small Cap vs. Calvert Global Equity
Performance |
| Timeline |
| Scout Small Cap |
| Calvert Global Equity |
Scout Small and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout Small and Calvert Global
The main advantage of trading using opposite Scout Small and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Small 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 Small vs. Target Retirement 2040 | Scout Small vs. Tiaa Cref Lifestyle Moderate | Scout Small vs. Mfs Lifetime Retirement | Scout Small vs. Cornerstone Moderately Aggressive |
| Calvert Global vs. Morningstar International Equity | Calvert Global vs. Pnc International Equity | Calvert Global vs. T Rowe Price | Calvert Global vs. Pioneer International Equity |
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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