Correlation Between Allianzgi Global and Calvert Global

Can any of the company-specific risk be diversified away by investing in both Allianzgi Global 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 Allianzgi Global and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allianzgi Global Water and Calvert Global Water, you can compare the effects of market volatilities on Allianzgi Global 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 Allianzgi Global with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Global and Calvert Global.

Diversification Opportunities for Allianzgi Global and Calvert Global

0.89

Correlation Coefficient

Allianzgi Global  Calvert Global

Very poor diversification

The 3 months correlation between Allianzgi and Calvert is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Global Water and Calvert Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Water and Allianzgi Global 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 Allianzgi Global Water 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 Water has no effect on the direction of Allianzgi Global i.e., Allianzgi Global and Calvert Global go up and down completely randomly.

Pair Corralation between Allianzgi Global and Calvert Global

Assuming the 90 days horizon Allianzgi Global is expected to generate 2.33 times less return on investment than Calvert Global. But when comparing it to its historical volatility, Allianzgi Global Water is 1.03 times less risky than Calvert Global. It trades about 0.02 of its potential returns per unit of risk. Calvert Global Water is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,772  in Calvert Global Water on September 2, 2024 and sell it today you would earn a total of  59.00  from holding Calvert Global Water or generate 2.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Allianzgi Global Water  vs.  Calvert Global Water

Allianzgi Global Water

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Global Water are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Allianzgi Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Global Water

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Water are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Allianzgi Global and Calvert Global

The main advantage of trading using opposite Allianzgi Global and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Global 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.

The idea behind Allianzgi Global Water and Calvert Global Water 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.