Correlation Between Calvert Capital and Calvert International
Can any of the company-specific risk be diversified away by investing in both Calvert Capital and Calvert International 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 Capital and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Capital Accumulation and Calvert International Equity, you can compare the effects of market volatilities on Calvert Capital and Calvert International 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 Capital with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Capital and Calvert International.
Diversification Opportunities for Calvert Capital and Calvert International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Calvert is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Capital Accumulation and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Calvert Capital 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 Capital Accumulation are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Calvert Capital i.e., Calvert Capital and Calvert International go up and down completely randomly.
Pair Corralation between Calvert Capital and Calvert International
Assuming the 90 days horizon Calvert Capital Accumulation is expected to generate 1.03 times more return on investment than Calvert International. However, Calvert Capital is 1.03 times more volatile than Calvert International Equity. It trades about 0.11 of its potential returns per unit of risk. Calvert International Equity is currently generating about -0.26 per unit of risk. If you would invest 3,882 in Calvert Capital Accumulation on August 25, 2024 and sell it today you would earn a total of 78.00 from holding Calvert Capital Accumulation or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Capital Accumulation vs. Calvert International Equity
Performance |
| Timeline |
| Calvert Capital Accu |
| Calvert International |
Calvert Capital and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Capital and Calvert International
The main advantage of trading using opposite Calvert Capital and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Capital position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| Calvert Capital vs. Vanguard Small Cap Index | Calvert Capital vs. Vanguard 500 Index | Calvert Capital vs. Vanguard Growth Index | Calvert Capital vs. Vanguard Total International |
| Calvert International vs. Value Fund Investor | Calvert International vs. Ultra Fund Investor | Calvert International vs. Growth Fund Investor | Calvert International vs. Select Fund Investor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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