Correlation Between Calvert Global and Absolute Convertible

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

Diversification Opportunities for Calvert Global and Absolute Convertible

0.98

Correlation Coefficient

Calvert Global  Absolute Convertible

Almost no diversification

The 3 months correlation between Calvert and Absolute is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Absolute Convertible Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Convertible 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 Absolute Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Convertible has no effect on the direction of Calvert Global i.e., Calvert Global and Absolute Convertible go up and down completely randomly.

Pair Corralation between Calvert Global and Absolute Convertible

Assuming the 90 days horizon Calvert Global Energy is expected to generate 10.63 times more return on investment than Absolute Convertible. However, Calvert Global is 10.63 times more volatile than Absolute Convertible Arbitrage. It trades about 0.33 of its potential returns per unit of risk. Absolute Convertible Arbitrage is currently generating about 0.4 per unit of risk. If you would invest  987.00  in Calvert Global Energy on May 1, 2025 and sell it today you would earn a total of  177.00  from holding Calvert Global Energy or generate 17.93% return on investment over 90 days.

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

Calvert Global Energy  vs.  Absolute Convertible Arbitrage

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 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calvert Global showed solid returns over the last few months and may actually be approaching a breakup point.

Absolute Convertible

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Absolute Convertible Arbitrage are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Absolute Convertible 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 Absolute Convertible

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

The idea behind Calvert Global Energy and Absolute Convertible Arbitrage 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.