Correlation Between Calvert Global and Bridge Builder

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

Diversification Opportunities for Calvert Global and Bridge Builder

0.7

Correlation Coefficient

Calvert Global  Bridge Builder

Poor diversification

The 3 months correlation between Calvert and Bridge is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Bridge Builder Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridge Builder Large 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 Bridge Builder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridge Builder Large has no effect on the direction of Calvert Global i.e., Calvert Global and Bridge Builder go up and down completely randomly.

Pair Corralation between Calvert Global and Bridge Builder

Assuming the 90 days horizon Calvert Global Energy is expected to generate 1.14 times more return on investment than Bridge Builder. However, Calvert Global is 1.14 times more volatile than Bridge Builder Large. It trades about 0.27 of its potential returns per unit of risk. Bridge Builder Large is currently generating about 0.23 per unit of risk. If you would invest  1,148  in Calvert Global Energy on May 21, 2025 and sell it today you would earn a total of  161.00  from holding Calvert Global Energy or generate 14.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Calvert Global Energy  vs.  Bridge Builder Large

Calvert Global Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Energy are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Global showed solid returns over the last few months and may actually be approaching a breakup point.

Bridge Builder Large

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bridge Builder Large are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Bridge Builder may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calvert Global and Bridge Builder

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

The idea behind Calvert Global Energy and Bridge Builder Large 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.