Correlation Between Calvert Global and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Growth, you can compare the effects of market volatilities on Calvert Global and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Multimanager Lifestyle.
Diversification Opportunities for Calvert Global and Multimanager Lifestyle
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Multimanager is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Multimanager Lifestyle Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Calvert Global i.e., Calvert Global and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Calvert Global and Multimanager Lifestyle
Assuming the 90 days horizon Calvert Global Energy is expected to generate 1.54 times more return on investment than Multimanager Lifestyle. However, Calvert Global is 1.54 times more volatile than Multimanager Lifestyle Growth. It trades about 0.41 of its potential returns per unit of risk. Multimanager Lifestyle Growth is currently generating about 0.34 per unit of risk. If you would invest 1,038 in Calvert Global Energy on April 23, 2025 and sell it today you would earn a total of 240.00 from holding Calvert Global Energy or generate 23.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.39% |
Values | Daily Returns |
Calvert Global Energy vs. Multimanager Lifestyle Growth
Performance |
Timeline |
Calvert Global Energy |
Multimanager Lifestyle |
Calvert Global and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calvert Global and Multimanager Lifestyle
The main advantage of trading using opposite Calvert Global and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.Calvert Global vs. Precious Metals And | Calvert Global vs. Europac Gold Fund | Calvert Global vs. Gabelli Gold Fund | Calvert Global vs. Invesco Gold Special |
Multimanager Lifestyle vs. Global Equity Fund | Multimanager Lifestyle vs. Jhancock Global Equity | Multimanager Lifestyle vs. Jhancock Global Equity | Multimanager Lifestyle vs. Jhancock Global Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |