Correlation Between Calvert Equity and Calvert Capital
Can any of the company-specific risk be diversified away by investing in both Calvert Equity and Calvert Capital 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 Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Equity Fund and Calvert Capital Accumulation, you can compare the effects of market volatilities on Calvert Equity and Calvert Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Equity and Calvert Capital.
Diversification Opportunities for Calvert Equity and Calvert Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calvert and Calvert is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Fund and Calvert Capital Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Capital Accu 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 Fund are associated (or correlated) with Calvert Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Capital Accu has no effect on the direction of Calvert Equity i.e., Calvert Equity and Calvert Capital go up and down completely randomly.
Pair Corralation between Calvert Equity and Calvert Capital
Assuming the 90 days horizon Calvert Equity Fund is expected to generate 0.9 times more return on investment than Calvert Capital. However, Calvert Equity Fund is 1.11 times less risky than Calvert Capital. It trades about 0.2 of its potential returns per unit of risk. Calvert Capital Accumulation is currently generating about 0.17 per unit of risk. If you would invest 8,989 in Calvert Equity Fund on April 26, 2025 and sell it today you would earn a total of 840.00 from holding Calvert Equity Fund or generate 9.34% 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 Fund vs. Calvert Capital Accumulation
Performance |
Timeline |
Calvert Equity |
Calvert Capital Accu |
Calvert Equity and Calvert Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calvert Equity and Calvert Capital
The main advantage of trading using opposite Calvert Equity and Calvert Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Equity position performs unexpectedly, Calvert Capital 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 Capital will offset losses from the drop in Calvert Capital's long position.Calvert Equity vs. Victory Sycamore Small | Calvert Equity vs. Brown Advisory Sustainable | Calvert Equity vs. Victory Sycamore Established | Calvert Equity vs. Calvert Equity Portfolio |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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