Correlation Between Calvert Global and New Alternatives
Can any of the company-specific risk be diversified away by investing in both Calvert Global and New Alternatives 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 New Alternatives 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 New Alternatives Fund, you can compare the effects of market volatilities on Calvert Global and New Alternatives 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 New Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and New Alternatives.
Diversification Opportunities for Calvert Global and New Alternatives
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and New is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and New Alternatives Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Alternatives 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 New Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Alternatives has no effect on the direction of Calvert Global i.e., Calvert Global and New Alternatives go up and down completely randomly.
Pair Corralation between Calvert Global and New Alternatives
Assuming the 90 days horizon Calvert Global Energy is expected to generate 0.98 times more return on investment than New Alternatives. However, Calvert Global Energy is 1.02 times less risky than New Alternatives. It trades about 0.0 of its potential returns per unit of risk. New Alternatives Fund is currently generating about -0.01 per unit of risk. If you would invest 1,139 in Calvert Global Energy on August 26, 2024 and sell it today you would lose (53.00) from holding Calvert Global Energy or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. New Alternatives Fund
Performance |
| Timeline |
| Calvert Global Energy |
| New Alternatives |
Calvert Global and New Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and New Alternatives
The main advantage of trading using opposite Calvert Global and New Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, New Alternatives 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 New Alternatives will offset losses from the drop in New Alternatives' long position.| Calvert Global vs. Quantitative U S | Calvert Global vs. Fisher Large Cap | Calvert Global vs. T Rowe Price | Calvert Global vs. Knights Of Umbus |
| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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