Correlation Between Calvert Small and Small Company
Can any of the company-specific risk be diversified away by investing in both Calvert Small and Small Company 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 Small and Small Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Small Cap and Small Pany Fund, you can compare the effects of market volatilities on Calvert Small and Small Company 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 Small with a short position of Small Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Small and Small Company.
Diversification Opportunities for Calvert Small and Small Company
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Small is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Small Cap and Small Pany Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany Fund and Calvert Small 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 Small Cap are associated (or correlated) with Small Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Fund has no effect on the direction of Calvert Small i.e., Calvert Small and Small Company go up and down completely randomly.
Pair Corralation between Calvert Small and Small Company
Assuming the 90 days horizon Calvert Small Cap is expected to generate 0.78 times more return on investment than Small Company. However, Calvert Small Cap is 1.29 times less risky than Small Company. It trades about 0.05 of its potential returns per unit of risk. Small Pany Fund is currently generating about 0.03 per unit of risk. If you would invest 2,369 in Calvert Small Cap on September 3, 2024 and sell it today you would earn a total of 619.00 from holding Calvert Small Cap or generate 26.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Small Cap vs. Small Pany Fund
Performance |
| Timeline |
| Calvert Small Cap |
| Small Pany Fund |
Calvert Small and Small Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Small and Small Company
The main advantage of trading using opposite Calvert Small and Small Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Small position performs unexpectedly, Small Company 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 Small Company will offset losses from the drop in Small Company's long position.| Calvert Small vs. Vanguard Small Cap Index | Calvert Small vs. Vanguard Small Cap Index | Calvert Small vs. Vanguard Small Cap Index | Calvert Small vs. Vanguard Small Cap Index |
| Small Company vs. Vanguard Small Cap Index | Small Company vs. Vanguard Small Cap Index | Small Company vs. Vanguard Small Cap Index | Small Company vs. Vanguard Small Cap Index |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |