Correlation Between Calvert Global and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Growth Strategy 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 Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Calvert Global and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Growth Strategy.
Diversification Opportunities for Calvert Global and Growth Strategy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calvert and Growth is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Calvert Global i.e., Calvert Global and Growth Strategy go up and down completely randomly.
Pair Corralation between Calvert Global and Growth Strategy
Assuming the 90 days horizon Calvert Global is expected to generate 3.42 times less return on investment than Growth Strategy. In addition to that, Calvert Global is 1.72 times more volatile than Growth Strategy Fund. It trades about 0.02 of its total potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.13 per unit of volatility. If you would invest 1,093 in Growth Strategy Fund on September 4, 2024 and sell it today you would earn a total of 223.00 from holding Growth Strategy Fund or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Growth Strategy Fund
Performance |
| Timeline |
| Calvert Global Energy |
| Growth Strategy |
Calvert Global and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Growth Strategy
The main advantage of trading using opposite Calvert Global and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Calvert Global vs. Ashmore Emerging Markets | Calvert Global vs. Wells Fargo Funds | Calvert Global vs. Lord Abbett Emerging | Calvert Global vs. Elfun Government Money |
| Growth Strategy vs. Icon Natural Resources | Growth Strategy vs. Calvert Global Energy | Growth Strategy vs. Invesco Energy Fund | Growth Strategy vs. Jennison Natural Resources |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |