Correlation Between New Alternatives and Calvert Global
Can any of the company-specific risk be diversified away by investing in both New Alternatives and Calvert Global 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 New Alternatives and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Alternatives Fund and Calvert Global Energy, you can compare the effects of market volatilities on New Alternatives and Calvert Global 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 New Alternatives with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Alternatives and Calvert Global.
Diversification Opportunities for New Alternatives and Calvert Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Calvert is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding New Alternatives Fund and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and New Alternatives 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 New Alternatives Fund are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of New Alternatives i.e., New Alternatives and Calvert Global go up and down completely randomly.
Pair Corralation between New Alternatives and Calvert Global
Assuming the 90 days horizon New Alternatives Fund is expected to under-perform the Calvert Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, New Alternatives Fund is 1.02 times less risky than Calvert Global. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Calvert Global Energy is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Calvert Global Energy on November 5, 2024 and sell it today you would lose (21.00) from holding Calvert Global Energy or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Alternatives Fund vs. Calvert Global Energy
Performance |
| Timeline |
| New Alternatives |
| Calvert Global Energy |
New Alternatives and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Alternatives and Calvert Global
The main advantage of trading using opposite New Alternatives and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Alternatives position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
| Calvert Global vs. Voya Solution Conservative | Calvert Global vs. Tax Free Conservative Income | Calvert Global vs. Federated Hermes Conservative | Calvert Global vs. Global Diversified Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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