Correlation Between Causeway International and Calvert Developed
Can any of the company-specific risk be diversified away by investing in both Causeway International and Calvert Developed 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 Causeway International and Calvert Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Causeway International Opportunities and Calvert Developed Market, you can compare the effects of market volatilities on Causeway International and Calvert Developed 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 Causeway International with a short position of Calvert Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Causeway International and Calvert Developed.
Diversification Opportunities for Causeway International and Calvert Developed
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Causeway and Calvert is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Causeway International Opportu and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market and Causeway International 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 Causeway International Opportunities are associated (or correlated) with Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of Causeway International i.e., Causeway International and Calvert Developed go up and down completely randomly.
Pair Corralation between Causeway International and Calvert Developed
Assuming the 90 days horizon Causeway International Opportunities is expected to generate 0.94 times more return on investment than Calvert Developed. However, Causeway International Opportunities is 1.07 times less risky than Calvert Developed. It trades about 0.08 of its potential returns per unit of risk. Calvert Developed Market is currently generating about 0.07 per unit of risk. If you would invest 1,487 in Causeway International Opportunities on September 14, 2024 and sell it today you would earn a total of 254.00 from holding Causeway International Opportunities or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Causeway International Opportu vs. Calvert Developed Market
Performance |
| Timeline |
| Causeway International |
| Calvert Developed Market |
Causeway International and Calvert Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Causeway International and Calvert Developed
The main advantage of trading using opposite Causeway International and Calvert Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Causeway International position performs unexpectedly, Calvert Developed 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 Developed will offset losses from the drop in Calvert Developed's long position.| Causeway International vs. Calvert Developed Market | Causeway International vs. Sp Midcap Index | Causeway International vs. Ab All Market | Causeway International vs. Extended Market Index |
| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |