Correlation Between Calvert Global and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Emerging Markets 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 Emerging Markets 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 Emerging Markets Leaders, you can compare the effects of market volatilities on Calvert Global and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Emerging Markets.
Diversification Opportunities for Calvert Global and Emerging Markets
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Emerging is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Emerging Markets Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Leaders 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Leaders has no effect on the direction of Calvert Global i.e., Calvert Global and Emerging Markets go up and down completely randomly.
Pair Corralation between Calvert Global and Emerging Markets
If you would invest 1,050 in Calvert Global Energy on September 14, 2024 and sell it today you would earn a total of 44.00 from holding Calvert Global Energy or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Calvert Global Energy vs. Emerging Markets Leaders
Performance |
| Timeline |
| Calvert Global Energy |
| Emerging Markets Leaders |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calvert Global and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Emerging Markets
The main advantage of trading using opposite Calvert Global and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Calvert Global vs. Ep Emerging Markets | Calvert Global vs. Calvert Developed Market | Calvert Global vs. Rbc Emerging Markets | Calvert Global vs. Aqr Long Short Equity |
| Emerging Markets vs. Jennison Natural Resources | Emerging Markets vs. Calvert Global Energy | Emerging Markets vs. Energy Basic Materials | Emerging Markets vs. Firsthand Alternative Energy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |