Correlation Between Calvert International and Calvert Smallmid
Can any of the company-specific risk be diversified away by investing in both Calvert International and Calvert Smallmid 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 Calvert Smallmid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert International Equity and Calvert Smallmid Cap A, you can compare the effects of market volatilities on Calvert International and Calvert Smallmid 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 Calvert Smallmid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Calvert Smallmid.
Diversification Opportunities for Calvert International and Calvert Smallmid
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and Calvert is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Calvert Smallmid Cap A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Smallmid Cap 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 Equity are associated (or correlated) with Calvert Smallmid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Smallmid Cap has no effect on the direction of Calvert International i.e., Calvert International and Calvert Smallmid go up and down completely randomly.
Pair Corralation between Calvert International and Calvert Smallmid
Assuming the 90 days horizon Calvert International Equity is expected to under-perform the Calvert Smallmid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert International Equity is 1.41 times less risky than Calvert Smallmid. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Calvert Smallmid Cap A is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,702 in Calvert Smallmid Cap A on August 31, 2024 and sell it today you would earn a total of 233.00 from holding Calvert Smallmid Cap A or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert International Equity vs. Calvert Smallmid Cap A
Performance |
| Timeline |
| Calvert International |
| Calvert Smallmid Cap |
Calvert International and Calvert Smallmid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Calvert Smallmid
The main advantage of trading using opposite Calvert International and Calvert Smallmid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Calvert Smallmid 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 Calvert Smallmid will offset losses from the drop in Calvert Smallmid's long position.| Calvert International vs. Europacific Growth Fund | Calvert International vs. Europacific Growth Fund | Calvert International vs. HUMANA INC | Calvert International vs. Aquagold International |
| Calvert Smallmid vs. Live Oak Health | Calvert Smallmid vs. Invesco Global Health | Calvert Smallmid vs. Health Biotchnology Portfolio | Calvert Smallmid vs. Highland Longshort Healthcare |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |