Correlation Between Calvert Global and Aqr Large

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

By analyzing existing cross correlation between Calvert Global Equity and Aqr Large Cap, you can compare the effects of market volatilities on Calvert Global and Aqr Large 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 Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Aqr Large.

Diversification Opportunities for Calvert Global and Aqr Large

0.91

Correlation Coefficient

Calvert Global  Aqr Large

Almost no diversification

The 3 months correlation between Calvert and Aqr is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Equity and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap 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 Equity are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Calvert Global i.e., Calvert Global and Aqr Large go up and down completely randomly.

Pair Corralation between Calvert Global and Aqr Large

Assuming the 90 days horizon Calvert Global is expected to generate 1.6 times less return on investment than Aqr Large. In addition to that, Calvert Global is 1.01 times more volatile than Aqr Large Cap. It trades about 0.12 of its total potential returns per unit of risk. Aqr Large Cap is currently generating about 0.2 per unit of volatility. If you would invest  2,242  in Aqr Large Cap on May 15, 2025 and sell it today you would earn a total of  192.00  from holding Aqr Large Cap or generate 8.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Calvert Global Equity  vs.  Aqr Large Cap

Calvert Global Equity

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aqr Large Cap

Risk-Adjusted Performance

Good

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

Pair Trading with Calvert Global and Aqr Large

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

The idea behind Calvert Global Equity and Aqr Large Cap 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.