Correlation Between Calvert International and Cambiar Smid
Can any of the company-specific risk be diversified away by investing in both Calvert International and Cambiar Smid 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 Cambiar Smid 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 Cambiar Smid Fund, you can compare the effects of market volatilities on Calvert International and Cambiar Smid 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 Cambiar Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Cambiar Smid.
Diversification Opportunities for Calvert International and Cambiar Smid
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Cambiar is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Cambiar Smid Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Smid 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 Cambiar Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Smid has no effect on the direction of Calvert International i.e., Calvert International and Cambiar Smid go up and down completely randomly.
Pair Corralation between Calvert International and Cambiar Smid
Assuming the 90 days horizon Calvert International Equity is expected to generate 0.96 times more return on investment than Cambiar Smid. However, Calvert International Equity is 1.05 times less risky than Cambiar Smid. It trades about 0.35 of its potential returns per unit of risk. Cambiar Smid Fund is currently generating about 0.22 per unit of risk. If you would invest 2,383 in Calvert International Equity on November 4, 2024 and sell it today you would earn a total of 137.00 from holding Calvert International Equity or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Calvert International Equity vs. Cambiar Smid Fund
Performance |
| Timeline |
| Calvert International |
| Cambiar Smid |
Calvert International and Cambiar Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Cambiar Smid
The main advantage of trading using opposite Calvert International and Cambiar Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Cambiar Smid 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 Cambiar Smid will offset losses from the drop in Cambiar Smid's long position.| Calvert International vs. Calvert Equity Portfolio | Calvert International vs. Calvert Small Cap | Calvert International vs. Calvert Bond Portfolio | Calvert International vs. Calvert Large Cap |
| Cambiar Smid vs. Rbb Fund | Cambiar Smid vs. Pnc Balanced Allocation | Cambiar Smid vs. Rational Strategic Allocation | Cambiar Smid vs. Rbc Global Equity |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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