Correlation Between Calvert Large and Dgi Investment

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

Diversification Opportunities for Calvert Large and Dgi Investment

CalvertDgiDiversified AwayCalvertDgiDiversified Away100%
0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Calvert and Dgi is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and Dgi Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgi Investment Trust and Calvert Large 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 Large Cap are associated (or correlated) with Dgi Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgi Investment Trust has no effect on the direction of Calvert Large i.e., Calvert Large and Dgi Investment go up and down completely randomly.

Pair Corralation between Calvert Large and Dgi Investment

Assuming the 90 days horizon Calvert Large is expected to generate 1.11 times less return on investment than Dgi Investment. But when comparing it to its historical volatility, Calvert Large Cap is 5.77 times less risky than Dgi Investment. It trades about 0.19 of its potential returns per unit of risk. Dgi Investment Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,159  in Dgi Investment Trust on November 14, 2024 and sell it today you would earn a total of  24.00  from holding Dgi Investment Trust or generate 2.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Calvert Large Cap  vs.  Dgi Investment Trust

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10123
JavaScript chart by amCharts 3.21.15CMIFX DGITX
       Timeline  
Calvert Large Cap 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert Large 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 3.21.15DecJanFebJanFeb9.69.629.649.669.689.79.72
Dgi Investment Trust 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dgi Investment Trust are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dgi Investment 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 3.21.15DecJanFebJanFeb11.511.611.711.811.9

Calvert Large and Dgi Investment Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.0995-0.0752-0.0508-0.0265-0.0021170.02150.04770.07510.120.35 1020304050
JavaScript chart by amCharts 3.21.15CMIFX DGITX
       Returns  

Pair Trading with Calvert Large and Dgi Investment

The main advantage of trading using opposite Calvert Large and Dgi Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large position performs unexpectedly, Dgi Investment 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 Dgi Investment will offset losses from the drop in Dgi Investment's long position.
The idea behind Calvert Large Cap and Dgi Investment Trust 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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