Correlation Between Calvert Global and Firsthand Alternative
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Firsthand Alternative 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 Global and Firsthand Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Firsthand Alternative Energy, you can compare the effects of market volatilities on Calvert Global and Firsthand Alternative 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 Global with a short position of Firsthand Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Firsthand Alternative.
Diversification Opportunities for Calvert Global and Firsthand Alternative
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calvert and Firsthand is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Firsthand Alternative Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firsthand Alternative and Calvert Global 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 Global Energy are associated (or correlated) with Firsthand Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firsthand Alternative has no effect on the direction of Calvert Global i.e., Calvert Global and Firsthand Alternative go up and down completely randomly.
Pair Corralation between Calvert Global and Firsthand Alternative
Assuming the 90 days horizon Calvert Global is expected to generate 1.59 times less return on investment than Firsthand Alternative. But when comparing it to its historical volatility, Calvert Global Energy is 1.76 times less risky than Firsthand Alternative. It trades about 0.38 of its potential returns per unit of risk. Firsthand Alternative Energy is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 783.00 in Firsthand Alternative Energy on April 24, 2025 and sell it today you would earn a total of 267.00 from holding Firsthand Alternative Energy or generate 34.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Calvert Global Energy vs. Firsthand Alternative Energy
Performance |
Timeline |
Calvert Global Energy |
Firsthand Alternative |
Calvert Global and Firsthand Alternative Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calvert Global and Firsthand Alternative
The main advantage of trading using opposite Calvert Global and Firsthand Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Firsthand Alternative 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 Firsthand Alternative will offset losses from the drop in Firsthand Alternative's long position.Calvert Global vs. Fidelity Managed Retirement | Calvert Global vs. Mutual Of America | Calvert Global vs. Deutsche Multi Asset Moderate | Calvert Global vs. Columbia Moderate Growth |
Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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