Correlation Between Calvert International and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Calvert International and Oakmark 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 International and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert International Opportunities and Oakmark International, you can compare the effects of market volatilities on Calvert International and Oakmark 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 International with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Oakmark International.
Diversification Opportunities for Calvert International and Oakmark International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Oakmark is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Opportun and Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Calvert 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 Calvert International Opportunities are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Calvert International i.e., Calvert International and Oakmark International go up and down completely randomly.
Pair Corralation between Calvert International and Oakmark International
Assuming the 90 days horizon Calvert International Opportunities is expected to generate 0.68 times more return on investment than Oakmark International. However, Calvert International Opportunities is 1.47 times less risky than Oakmark International. It trades about 0.12 of its potential returns per unit of risk. Oakmark International is currently generating about -0.1 per unit of risk. If you would invest 1,723 in Calvert International Opportunities on September 5, 2024 and sell it today you would earn a total of 37.00 from holding Calvert International Opportunities or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert International Opportun vs. Oakmark International
Performance |
| Timeline |
| Calvert International |
| Oakmark International |
Calvert International and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Oakmark International
The main advantage of trading using opposite Calvert International and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Oakmark 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 Oakmark International will offset losses from the drop in Oakmark International's long position.| Calvert International vs. Siit High Yield | Calvert International vs. Pioneer High Yield | Calvert International vs. Gmo High Yield | Calvert International vs. Alpine High Yield |
| Oakmark International vs. M Large Cap | Oakmark International vs. Qs Large Cap | Oakmark International vs. Tax Managed Large Cap | Oakmark International vs. American Mutual Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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