Correlation Between Bio Rad and Calvert Large

Can any of the company-specific risk be diversified away by investing in both Bio Rad and Calvert Large 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 Bio Rad and Calvert Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bio Rad Laboratories and Calvert Large Cap E, you can compare the effects of market volatilities on Bio Rad and Calvert Large 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 Bio Rad with a short position of Calvert Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Calvert Large.

Diversification Opportunities for Bio Rad and Calvert Large

0.33

Correlation Coefficient

Bio Rad  Calvert Large

Weak diversification

The 3 months correlation between Bio and Calvert is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Calvert Large Cap E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Bio Rad i.e., Bio Rad and Calvert Large go up and down completely randomly.

Pair Corralation between Bio Rad and Calvert Large

Considering the 90-day investment horizon Bio Rad is expected to generate 1.37 times less return on investment than Calvert Large. In addition to that, Bio Rad is 3.06 times more volatile than Calvert Large Cap E. It trades about 0.08 of its total potential returns per unit of risk. Calvert Large Cap E is currently generating about 0.32 per unit of volatility. If you would invest  4,725  in Calvert Large Cap E on April 28, 2025 and sell it today you would earn a total of  778.00  from holding Calvert Large Cap E or generate 16.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bio Rad Laboratories  vs.  Calvert Large Cap E

Bio Rad Laboratories

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bio Rad and Calvert Large

The main advantage of trading using opposite Bio Rad and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, Calvert Large 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 Large will offset losses from the drop in Calvert Large's long position.

The idea behind Bio Rad Laboratories and Calvert Large Cap E pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.