Correlation Between Calvert Global and Rbc Emerging

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Can any of the company-specific risk be diversified away by investing in both Calvert Global and Rbc 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 Rbc Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Equity and Rbc Emerging Markets, you can compare the effects of market volatilities on Calvert Global and Rbc 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 Rbc Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Rbc Emerging.

Diversification Opportunities for Calvert Global and Rbc Emerging

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Calvert and Rbc is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Equity and Rbc Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc 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 Equity are associated (or correlated) with Rbc Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Emerging Markets has no effect on the direction of Calvert Global i.e., Calvert Global and Rbc Emerging go up and down completely randomly.

Pair Corralation between Calvert Global and Rbc Emerging

Assuming the 90 days horizon Calvert Global Equity is expected to generate 1.79 times more return on investment than Rbc Emerging. However, Calvert Global is 1.79 times more volatile than Rbc Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. Rbc Emerging Markets is currently generating about 0.24 per unit of risk. If you would invest  1,592  in Calvert Global Equity on October 31, 2025 and sell it today you would earn a total of  248.00  from holding Calvert Global Equity or generate 15.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Calvert Global Equity  vs.  Rbc Emerging Markets

 Performance 
       Timeline  
Calvert Global Equity 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Equity are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Global showed solid returns over the last few months and may actually be approaching a breakup point.
Rbc Emerging Markets 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Rbc Emerging Markets are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Rbc Emerging showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Global and Rbc Emerging Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calvert Global and Rbc Emerging

The main advantage of trading using opposite Calvert Global and Rbc Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Rbc 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 Rbc Emerging will offset losses from the drop in Rbc Emerging's long position.
The idea behind Calvert Global Equity and Rbc Emerging Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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