Correlation Between Calvert Global and Oil Gas

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

Diversification Opportunities for Calvert Global and Oil Gas

0.04

Correlation Coefficient

Calvert Global  Oil Gas

Significant diversification

The 3 months correlation between Calvert and Oil is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Oil Gas Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Gas Ultrasector 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 Oil Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Gas Ultrasector has no effect on the direction of Calvert Global i.e., Calvert Global and Oil Gas go up and down completely randomly.

Pair Corralation between Calvert Global and Oil Gas

Assuming the 90 days horizon Calvert Global is expected to generate 1.42 times less return on investment than Oil Gas. But when comparing it to its historical volatility, Calvert Global Energy is 1.66 times less risky than Oil Gas. It trades about 0.12 of its potential returns per unit of risk. Oil Gas Ultrasector is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,815  in Oil Gas Ultrasector on August 16, 2025 and sell it today you would earn a total of  369.00  from holding Oil Gas Ultrasector or generate 9.67% return on investment over 90 days.

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

Calvert Global Energy  vs.  Oil Gas Ultrasector

Calvert Global Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Energy are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Global may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Oil Gas Ultrasector

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Oil Gas Ultrasector are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Oil Gas may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Calvert Global and Oil Gas

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

The idea behind Calvert Global Energy and Oil Gas Ultrasector 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 Transaction History module to view history of all your transactions and understand their impact on performance.