Correlation Between Calvert Large and Fidelity Value

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

By analyzing existing cross correlation between Calvert Large Cap and Fidelity Value Fund, you can compare the effects of market volatilities on Calvert Large and Fidelity Value 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 Large with a short position of Fidelity Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and Fidelity Value.

Diversification Opportunities for Calvert Large and Fidelity Value

0.99

Correlation Coefficient

Calvert Large  Fidelity Value

No risk reduction

The 3 months correlation between Calvert and Fidelity is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and Fidelity Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Value and Calvert Large 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 Large Cap are associated (or correlated) with Fidelity Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Value has no effect on the direction of Calvert Large i.e., Calvert Large and Fidelity Value go up and down completely randomly.

Pair Corralation between Calvert Large and Fidelity Value

Assuming the 90 days horizon Calvert Large is expected to generate 1.29 times less return on investment than Fidelity Value. But when comparing it to its historical volatility, Calvert Large Cap is 1.38 times less risky than Fidelity Value. It trades about 0.22 of its potential returns per unit of risk. Fidelity Value Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,246  in Fidelity Value Fund on April 29, 2025 and sell it today you would earn a total of  180.00  from holding Fidelity Value Fund or generate 14.45% return on investment over 90 days.

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

Calvert Large Cap  vs.  Fidelity Value Fund

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Large may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Fidelity Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Value Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Fidelity Value showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calvert Large and Fidelity Value

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

The idea behind Calvert Large Cap and Fidelity Value Fund 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.