Correlation Between Calvert Emerging and Calvert Us

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

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

Diversification Opportunities for Calvert Emerging and Calvert Us

-0.48

Correlation Coefficient

Calvert Emerging  Calvert Us

Very good diversification

The 3 months correlation between Calvert and Calvert is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Calvert Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Mid Cap and Calvert 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 Calvert Emerging Markets are associated (or correlated) with Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Mid Cap has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Calvert Us go up and down completely randomly.

Pair Corralation between Calvert Emerging and Calvert Us

Assuming the 90 days horizon Calvert Emerging Markets is expected to under-perform the Calvert Us. In addition to that, Calvert Emerging is 1.04 times more volatile than Calvert Mid Cap. It trades about -0.08 of its total potential returns per unit of risk. Calvert Mid Cap is currently generating about 0.22 per unit of volatility. If you would invest  4,013  in Calvert Mid Cap on September 4, 2024 and sell it today you would earn a total of  442.00  from holding Calvert Mid Cap or generate 11.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Calvert Emerging Markets  vs.  Calvert Mid Cap

Calvert Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calvert Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Mid Cap

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Mid Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Us may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Calvert Emerging and Calvert Us

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

The idea behind Calvert Emerging Markets and Calvert Mid Cap 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.