Correlation Between Calvert Global and Brandes Emerging

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

Diversification Opportunities for Calvert Global and Brandes Emerging

0.0

Correlation Coefficient

Calvert Global  Brandes Emerging

Pay attention - limited upside

The 3 months correlation between Calvert and Brandes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Equity and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets 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 Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Calvert Global i.e., Calvert Global and Brandes Emerging go up and down completely randomly.

Pair Corralation between Calvert Global and Brandes Emerging

If you would invest  945.00  in Brandes Emerging Markets on May 11, 2025 and sell it today you would earn a total of  123.00  from holding Brandes Emerging Markets or generate 13.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Calvert Global Equity  vs.  Brandes Emerging Markets

Calvert Global Equity

Risk-Adjusted Performance

Fair

Over the last 90 days Calvert Global Equity has generated negative risk-adjusted returns adding no value to fund investors. 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.

Brandes Emerging Markets

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brandes Emerging Markets are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Brandes Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calvert Global and Brandes Emerging

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

The idea behind Calvert Global Equity and Brandes Emerging Markets 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.