Correlation Between Calvert Global and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Water and Calvert Emerging Markets, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Calvert Emerging.
Diversification Opportunities for Calvert Global and Calvert Emerging
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Water 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 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 Water 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 Calvert Global i.e., Calvert Global and Calvert Emerging go up and down completely randomly.
Pair Corralation between Calvert Global and Calvert Emerging
Assuming the 90 days horizon Calvert Global Water is expected to generate 0.84 times more return on investment than Calvert Emerging. However, Calvert Global Water is 1.19 times less risky than Calvert Emerging. It trades about 0.07 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 2,733 in Calvert Global Water on August 29, 2024 and sell it today you would earn a total of 347.00 from holding Calvert Global Water or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Water vs. Calvert Emerging Markets
Performance |
| Timeline |
| Calvert Global Water |
| Calvert Emerging Markets |
Calvert Global and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Calvert Emerging
The main advantage of trading using opposite Calvert Global and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Allianzgi Global Water | Calvert Global vs. Calvert Global Energy | Calvert Global vs. First Trust Water | Calvert Global vs. Invesco Global Water |
| Calvert Emerging vs. Calvert Small Cap | Calvert Emerging vs. Calvert Large Cap | Calvert Emerging vs. Johcm International Select | Calvert Emerging vs. Calvert International Opportunities |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |