Correlation Between Calvert Equity and Calvert Servative

Can any of the company-specific risk be diversified away by investing in both Calvert Equity and Calvert Servative 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 Equity and Calvert Servative into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calvert Equity Portfolio and Calvert Servative Allocation, you can compare the effects of market volatilities on Calvert Equity and Calvert Servative 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 Equity with a short position of Calvert Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Equity and Calvert Servative.

Diversification Opportunities for Calvert Equity and Calvert Servative

0.92

Correlation Coefficient

Calvert Equity  Calvert Servative

Almost no diversification

The 3 months correlation between Calvert and Calvert is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Portfolio and Calvert Servative Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Servative and Calvert Equity 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 Equity Portfolio are associated (or correlated) with Calvert Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Servative has no effect on the direction of Calvert Equity i.e., Calvert Equity and Calvert Servative go up and down completely randomly.

Pair Corralation between Calvert Equity and Calvert Servative

Assuming the 90 days horizon Calvert Equity Portfolio is expected to generate 2.33 times more return on investment than Calvert Servative. However, Calvert Equity is 2.33 times more volatile than Calvert Servative Allocation. It trades about 0.19 of its potential returns per unit of risk. Calvert Servative Allocation is currently generating about 0.21 per unit of risk. If you would invest  9,192  in Calvert Equity Portfolio on April 30, 2025 and sell it today you would earn a total of  819.00  from holding Calvert Equity Portfolio or generate 8.91% return on investment over 90 days.

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

Calvert Equity Portfolio  vs.  Calvert Servative Allocation

Calvert Equity Portfolio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Equity Portfolio are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Equity may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Calvert Servative

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Servative Allocation are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Servative 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 Equity and Calvert Servative

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

The idea behind Calvert Equity Portfolio and Calvert Servative Allocation 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 CEOs Directory module to screen CEOs from public companies around the world.