Correlation Between Calvert Equity and Wasatch E

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

Diversification Opportunities for Calvert Equity and Wasatch E

0.9

Correlation Coefficient

Calvert Equity  Wasatch E

Almost no diversification

The 3 months correlation between Calvert and Wasatch is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Portfolio 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 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 Wasatch E. 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 Equity i.e., Calvert Equity and Wasatch E go up and down completely randomly.

Pair Corralation between Calvert Equity and Wasatch E

Assuming the 90 days horizon Calvert Equity is expected to generate 1.11 times less return on investment than Wasatch E. But when comparing it to its historical volatility, Calvert Equity Portfolio is 1.57 times less risky than Wasatch E. It trades about 0.25 of its potential returns per unit of risk. Wasatch E Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  7,661  in Wasatch E Growth on April 20, 2025 and sell it today you would earn a total of  1,138  from holding Wasatch E Growth or generate 14.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Calvert Equity Portfolio  vs.  Wasatch E Growth

Calvert Equity Portfolio

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Equity Portfolio are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Equity showed solid returns over the last few months and may actually be approaching a breakup point.

Wasatch E Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wasatch E Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Wasatch E showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calvert Equity and Wasatch E

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

The idea behind Calvert Equity Portfolio 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.