Correlation Between Walden Midcap and Calvert International
Can any of the company-specific risk be diversified away by investing in both Walden Midcap 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 Walden Midcap and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walden Midcap Fund and Calvert International Equity, you can compare the effects of market volatilities on Walden Midcap 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 Walden Midcap with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walden Midcap and Calvert International.
Diversification Opportunities for Walden Midcap and Calvert International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walden and Calvert is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Walden Midcap Fund and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Walden Midcap 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 Walden Midcap Fund 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 Walden Midcap i.e., Walden Midcap and Calvert International go up and down completely randomly.
Pair Corralation between Walden Midcap and Calvert International
Assuming the 90 days horizon Walden Midcap is expected to generate 1.05 times less return on investment than Calvert International. In addition to that, Walden Midcap is 1.0 times more volatile than Calvert International Equity. It trades about 0.03 of its total potential returns per unit of risk. Calvert International Equity is currently generating about 0.03 per unit of volatility. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walden Midcap Fund vs. Calvert International Equity
Performance |
| Timeline |
| Walden Midcap |
| Calvert International |
Walden Midcap and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walden Midcap and Calvert International
The main advantage of trading using opposite Walden Midcap and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walden Midcap 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.| Walden Midcap vs. Jpmorgan Value Advantage | Walden Midcap vs. Jpmorgan Growth Advantage | Walden Midcap vs. Jpmorgan Equity Income | Walden Midcap vs. Barloworld Ltd ADR |
| Calvert International vs. Barloworld Ltd ADR | Calvert International vs. Morningstar Unconstrained Allocation | Calvert International vs. Thrivent High Yield | Calvert International vs. Via Renewables |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |