Correlation Between Calvert Aggressive and Needham Aggressive

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

By analyzing existing cross correlation between Calvert Aggressive Allocation and Needham Aggressive Growth, you can compare the effects of market volatilities on Calvert Aggressive and Needham Aggressive 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 Aggressive with a short position of Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Aggressive and Needham Aggressive.

Diversification Opportunities for Calvert Aggressive and Needham Aggressive

0.96

Correlation Coefficient

Calvert Aggressive  Needham Aggressive

Almost no diversification

The 3 months correlation between Calvert and Needham is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Aggressive Allocation and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth and Calvert Aggressive 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 Aggressive Allocation are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Calvert Aggressive i.e., Calvert Aggressive and Needham Aggressive go up and down completely randomly.

Pair Corralation between Calvert Aggressive and Needham Aggressive

Assuming the 90 days horizon Calvert Aggressive is expected to generate 2.41 times less return on investment than Needham Aggressive. But when comparing it to its historical volatility, Calvert Aggressive Allocation is 2.14 times less risky than Needham Aggressive. It trades about 0.18 of its potential returns per unit of risk. Needham Aggressive Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  5,009  in Needham Aggressive Growth on May 26, 2025 and sell it today you would earn a total of  798.00  from holding Needham Aggressive Growth or generate 15.93% return on investment over 90 days.

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

Calvert Aggressive Allocation  vs.  Needham Aggressive Growth

Calvert Aggressive

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Aggressive Allocation are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Aggressive may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Needham Aggressive Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Needham Aggressive Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Needham Aggressive showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calvert Aggressive and Needham Aggressive

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

The idea behind Calvert Aggressive Allocation and Needham Aggressive Growth 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.