Correlation Between Nasdaq-100 Index and Calvert Capital
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Index and Calvert Capital 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 Nasdaq-100 Index and Calvert Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Calvert Capital Accumulation, you can compare the effects of market volatilities on Nasdaq-100 Index and Calvert Capital 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 Nasdaq-100 Index with a short position of Calvert Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Index and Calvert Capital.
Diversification Opportunities for Nasdaq-100 Index and Calvert Capital
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq-100 and Calvert is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Calvert Capital Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Capital Accu and Nasdaq-100 Index 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 Nasdaq 100 Index Fund are associated (or correlated) with Calvert Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Capital Accu has no effect on the direction of Nasdaq-100 Index i.e., Nasdaq-100 Index and Calvert Capital go up and down completely randomly.
Pair Corralation between Nasdaq-100 Index and Calvert Capital
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 0.92 times more return on investment than Calvert Capital. However, Nasdaq 100 Index Fund is 1.09 times less risky than Calvert Capital. It trades about 0.2 of its potential returns per unit of risk. Calvert Capital Accumulation is currently generating about 0.1 per unit of risk. If you would invest 5,279 in Nasdaq 100 Index Fund on May 27, 2025 and sell it today you would earn a total of 521.00 from holding Nasdaq 100 Index Fund or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Calvert Capital Accumulation
Performance |
| Timeline |
| Nasdaq 100 Index |
| Calvert Capital Accu |
Nasdaq-100 Index and Calvert Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Index and Calvert Capital
The main advantage of trading using opposite Nasdaq-100 Index and Calvert Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Index position performs unexpectedly, Calvert Capital 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 Capital will offset losses from the drop in Calvert Capital's long position.| Nasdaq-100 Index vs. Siit Large Cap | Nasdaq-100 Index vs. Fidelity Large Cap | Nasdaq-100 Index vs. Astonherndon Large Cap | Nasdaq-100 Index vs. Prudential Qma Large Cap |
| Calvert Capital vs. Calvert Developed Market | Calvert Capital vs. Calvert Developed Market | Calvert Capital vs. Calvert Short Duration | Calvert Capital vs. Calvert International Responsible |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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