Correlation Between Calvert Moderate and Ubs International

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Can any of the company-specific risk be diversified away by investing in both Calvert Moderate and Ubs International 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 Moderate and Ubs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Moderate Allocation and Ubs International Sustainable, you can compare the effects of market volatilities on Calvert Moderate and Ubs International 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 Moderate with a short position of Ubs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Ubs International.

Diversification Opportunities for Calvert Moderate and Ubs International

CalvertUBSDiversified AwayCalvertUBSDiversified Away100%
0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Calvert and UBS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Ubs International Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs International and Calvert Moderate 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 Moderate Allocation are associated (or correlated) with Ubs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs International has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Ubs International go up and down completely randomly.

Pair Corralation between Calvert Moderate and Ubs International

Assuming the 90 days horizon Calvert Moderate is expected to generate 1.28 times less return on investment than Ubs International. But when comparing it to its historical volatility, Calvert Moderate Allocation is 1.55 times less risky than Ubs International. It trades about 0.09 of its potential returns per unit of risk. Ubs International Sustainable is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  964.00  in Ubs International Sustainable on November 24, 2024 and sell it today you would earn a total of  121.00  from holding Ubs International Sustainable or generate 12.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Calvert Moderate Allocation  vs.  Ubs International Sustainable

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -4-202468
JavaScript chart by amCharts 3.21.15CMACX ESPTX
       Timeline  
Calvert Moderate All 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Calvert Moderate Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Calvert Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb20.220.420.620.82121.2
Ubs International 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ubs International Sustainable are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ubs International may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1010.210.410.610.811

Calvert Moderate and Ubs International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.62-1.2-0.78-0.360.0069640.370.791.211.632.05 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15CMACX ESPTX
       Returns  

Pair Trading with Calvert Moderate and Ubs International

The main advantage of trading using opposite Calvert Moderate and Ubs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate position performs unexpectedly, Ubs International 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 Ubs International will offset losses from the drop in Ubs International's long position.
The idea behind Calvert Moderate Allocation and Ubs International Sustainable 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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