Correlation Between Calvert Global and Inverse Nasdaq

Can any of the company-specific risk be diversified away by investing in both Calvert Global and Inverse Nasdaq 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 Inverse Nasdaq 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 Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on Calvert Global and Inverse Nasdaq 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 Inverse Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Inverse Nasdaq.

Diversification Opportunities for Calvert Global and Inverse Nasdaq

-0.97

Correlation Coefficient

Calvert Global  Inverse Nasdaq

Pay attention - limited upside

The 3 months correlation between Calvert and Inverse is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 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 Inverse Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of Calvert Global i.e., Calvert Global and Inverse Nasdaq go up and down completely randomly.

Pair Corralation between Calvert Global and Inverse Nasdaq

Assuming the 90 days horizon Calvert Global Energy is expected to generate 1.02 times more return on investment than Inverse Nasdaq. However, Calvert Global is 1.02 times more volatile than Inverse Nasdaq 100 Strategy. It trades about 0.24 of its potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about -0.19 per unit of risk. If you would invest  1,157  in Calvert Global Energy on May 17, 2025 and sell it today you would earn a total of  143.00  from holding Calvert Global Energy or generate 12.36% return on investment over 90 days.

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

Calvert Global Energy  vs.  Inverse Nasdaq 100 Strategy

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 18 (%) 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 September 2025.

Inverse Nasdaq 100

Risk-Adjusted Performance

Weakest

Over the last 90 days Inverse Nasdaq 100 Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calvert Global and Inverse Nasdaq

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

The idea behind Calvert Global Energy and Inverse Nasdaq 100 Strategy 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.