Correlation Between Hunter Small and Calvert International
Can any of the company-specific risk be diversified away by investing in both Hunter Small and Calvert International 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 Hunter Small and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Small Cap and Calvert International Equity, you can compare the effects of market volatilities on Hunter Small and Calvert International 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 Hunter Small with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Calvert International.
Diversification Opportunities for Hunter Small and Calvert International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunter and Calvert is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Hunter 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 Hunter Small Cap are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Hunter Small i.e., Hunter Small and Calvert International go up and down completely randomly.
Pair Corralation between Hunter Small and Calvert International
Assuming the 90 days horizon Hunter Small is expected to generate 2.43 times less return on investment than Calvert International. In addition to that, Hunter Small is 1.1 times more volatile than Calvert International Equity. It trades about 0.11 of its total potential returns per unit of risk. Calvert International Equity is currently generating about 0.28 per unit of volatility. If you would invest 2,404 in Calvert International Equity on October 26, 2024 and sell it today you would earn a total of 101.00 from holding Calvert International Equity or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Calvert International Equity
Performance |
| Timeline |
| Hunter Small Cap |
| Calvert International |
Hunter Small and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Calvert International
The main advantage of trading using opposite Hunter Small and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| Hunter Small vs. Jhancock Diversified Macro | Hunter Small vs. Tax Free Conservative Income | Hunter Small vs. Delaware Limited Term Diversified | Hunter Small vs. Lord Abbett Diversified |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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