Correlation Between Calvert Global and Wasatch Core

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

Diversification Opportunities for Calvert Global and Wasatch Core

0.61

Correlation Coefficient

Calvert Global  Wasatch Core

Poor diversification

The 3 months correlation between Calvert and Wasatch is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Wasatch E Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch E Growth 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 Wasatch Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch E Growth has no effect on the direction of Calvert Global i.e., Calvert Global and Wasatch Core go up and down completely randomly.

Pair Corralation between Calvert Global and Wasatch Core

Assuming the 90 days horizon Calvert Global Energy is expected to generate 0.76 times more return on investment than Wasatch Core. However, Calvert Global Energy is 1.32 times less risky than Wasatch Core. It trades about 0.24 of its potential returns per unit of risk. Wasatch E Growth is currently generating about -0.04 per unit of risk. If you would invest  1,150  in Calvert Global Energy on May 14, 2025 and sell it today you would earn a total of  143.00  from holding Calvert Global Energy or generate 12.43% return on investment over 90 days.

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

Calvert Global Energy  vs.  Wasatch E Growth

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.

Wasatch E Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Wasatch E Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Wasatch Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calvert Global and Wasatch Core

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

The idea behind Calvert Global Energy and Wasatch E Growth 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.