Correlation Between Calvert International and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Calvert International and Champlain Mid 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 Champlain Mid 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 Champlain Mid Cap, you can compare the effects of market volatilities on Calvert International and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Champlain Mid.
Diversification Opportunities for Calvert International and Champlain Mid
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Champlain is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid 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 Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Calvert International i.e., Calvert International and Champlain Mid go up and down completely randomly.
Pair Corralation between Calvert International and Champlain Mid
Assuming the 90 days horizon Calvert International Equity is expected to generate 0.81 times more return on investment than Champlain Mid. However, Calvert International Equity is 1.23 times less risky than Champlain Mid. It trades about 0.03 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about 0.02 per unit of risk. If you would invest 2,221 in Calvert International Equity on October 25, 2024 and sell it today you would earn a total of 274.00 from holding Calvert International Equity or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert International Equity vs. Champlain Mid Cap
Performance |
| Timeline |
| Calvert International |
| Champlain Mid Cap |
Calvert International and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and Champlain Mid
The main advantage of trading using opposite Calvert International and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid's long position.| Calvert International vs. Barloworld Ltd ADR | Calvert International vs. Morningstar Unconstrained Allocation | Calvert International vs. Thrivent High Yield | Calvert International vs. Via Renewables |
| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. Loomis Sayles Growth | Champlain Mid vs. Barloworld Ltd ADR |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |