Correlation Between Investec Emerging and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Calvert Emerging 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 Investec Emerging and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Calvert Emerging Markets, you can compare the effects of market volatilities on Investec Emerging and Calvert Emerging 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 Investec Emerging with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Calvert Emerging.
Diversification Opportunities for Investec Emerging and Calvert Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investec and Calvert is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Investec Emerging i.e., Investec Emerging and Calvert Emerging go up and down completely randomly.
Pair Corralation between Investec Emerging and Calvert Emerging
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 0.99 times more return on investment than Calvert Emerging. However, Investec Emerging Markets is 1.01 times less risky than Calvert Emerging. It trades about 0.17 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.11 per unit of risk. If you would invest 1,199 in Investec Emerging Markets on June 5, 2025 and sell it today you would earn a total of 92.00 from holding Investec Emerging Markets or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Calvert Emerging Markets
Performance |
| Timeline |
| Investec Emerging Markets |
| Calvert Emerging Markets |
Investec Emerging and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Calvert Emerging
The main advantage of trading using opposite Investec Emerging and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.| Investec Emerging vs. Lebenthal Lisanti Small | Investec Emerging vs. Artisan Small Cap | Investec Emerging vs. Smallcap Fund Fka | Investec Emerging vs. Omni Small Cap Value |
| Calvert Emerging vs. Mondrian Emerging Markets | Calvert Emerging vs. Growth Strategy Fund | Calvert Emerging vs. Dodge Cox Emerging | Calvert Emerging vs. Doubleline Emerging Markets |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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