Correlation Between Calvert Global and Msvif Growth

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

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

Diversification Opportunities for Calvert Global and Msvif Growth

-0.47

Correlation Coefficient

Calvert Global  Msvif Growth

Very good diversification

The 3 months correlation between Calvert and Msvif is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Msvif Growth Port in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Msvif Growth Port and Calvert 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 Calvert Global Energy are associated (or correlated) with Msvif Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Msvif Growth Port has no effect on the direction of Calvert Global i.e., Calvert Global and Msvif Growth go up and down completely randomly.

Pair Corralation between Calvert Global and Msvif Growth

Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Msvif Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert Global Energy is 2.01 times less risky than Msvif Growth. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Msvif Growth Port is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest  1,622  in Msvif Growth Port on September 5, 2024 and sell it today you would earn a total of  431.00  from holding Msvif Growth Port or generate 26.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Calvert Global Energy  vs.  Msvif Growth Port

Calvert Global Energy

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Energy are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and 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.

Msvif Growth Port

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Msvif Growth Port are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Msvif Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calvert Global and Msvif Growth

The main advantage of trading using opposite Calvert Global and Msvif Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Msvif Growth 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 Msvif Growth will offset losses from the drop in Msvif Growth's long position.

The idea behind Calvert Global Energy and Msvif Growth Port 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.