Correlation Between Calvert Emerging and Capital Management
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Capital Management 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 Emerging and Capital Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Emerging Markets and Capital Management Mid Cap, you can compare the effects of market volatilities on Calvert Emerging and Capital Management 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 Emerging with a short position of Capital Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Capital Management.
Diversification Opportunities for Calvert Emerging and Capital Management
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Capital is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Capital Management Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Management Mid and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Capital Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Management Mid has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Capital Management go up and down completely randomly.
Pair Corralation between Calvert Emerging and Capital Management
Assuming the 90 days horizon Calvert Emerging Markets is expected to generate 0.98 times more return on investment than Capital Management. However, Calvert Emerging Markets is 1.02 times less risky than Capital Management. It trades about 0.03 of its potential returns per unit of risk. Capital Management Mid Cap is currently generating about -0.01 per unit of risk. If you would invest 1,738 in Calvert Emerging Markets on November 4, 2024 and sell it today you would earn a total of 10.00 from holding Calvert Emerging Markets or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Capital Management Mid Cap
Performance |
| Timeline |
| Calvert Emerging Markets |
| Capital Management Mid |
Calvert Emerging and Capital Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Capital Management
The main advantage of trading using opposite Calvert Emerging and Capital Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Capital Management 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 Capital Management will offset losses from the drop in Capital Management's long position.| Calvert Emerging vs. Calvert Small Cap | Calvert Emerging vs. Calvert Equity Portfolio | Calvert Emerging vs. Calvert International Opportunities | Calvert Emerging vs. Calvert Short Duration |
| Capital Management vs. Pace High Yield | Capital Management vs. Catalyst Exceed Defined | Capital Management vs. The Hartford High | Capital Management vs. Chartwell 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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