Correlation Between Calvert Aggressive and Wilmington Diversified

Can any of the company-specific risk be diversified away by investing in both Calvert Aggressive and Wilmington Diversified 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 Wilmington Diversified 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 Wilmington Diversified Income, you can compare the effects of market volatilities on Calvert Aggressive and Wilmington Diversified 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 Wilmington Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Aggressive and Wilmington Diversified.

Diversification Opportunities for Calvert Aggressive and Wilmington Diversified

0.98

Correlation Coefficient

Calvert Aggressive  Wilmington Diversified

Almost no diversification

The 3 months correlation between Calvert and Wilmington is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Aggressive Allocation and Wilmington Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Diversified 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 Wilmington Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Diversified has no effect on the direction of Calvert Aggressive i.e., Calvert Aggressive and Wilmington Diversified go up and down completely randomly.

Pair Corralation between Calvert Aggressive and Wilmington Diversified

Assuming the 90 days horizon Calvert Aggressive is expected to generate 1.09 times less return on investment than Wilmington Diversified. In addition to that, Calvert Aggressive is 1.01 times more volatile than Wilmington Diversified Income. It trades about 0.19 of its total potential returns per unit of risk. Wilmington Diversified Income is currently generating about 0.21 per unit of volatility. If you would invest  1,319  in Wilmington Diversified Income on May 22, 2025 and sell it today you would earn a total of  98.00  from holding Wilmington Diversified Income or generate 7.43% 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.  Wilmington Diversified Income

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 15 (%) 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.

Wilmington Diversified

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wilmington Diversified Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Wilmington Diversified may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calvert Aggressive and Wilmington Diversified

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

The idea behind Calvert Aggressive Allocation and Wilmington Diversified Income 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.