Correlation Between Calvert International and Blackrock High

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

By analyzing existing cross correlation between Calvert International Equity and Blackrock High Income, you can compare the effects of market volatilities on Calvert International and Blackrock High 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 International with a short position of Blackrock High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Blackrock High.

Diversification Opportunities for Calvert International and Blackrock High

0.95

Correlation Coefficient

Calvert International  Blackrock High

Almost no diversification

The 3 months correlation between Calvert and Blackrock is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Blackrock High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock High Income and Calvert International 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 International Equity are associated (or correlated) with Blackrock High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock High Income has no effect on the direction of Calvert International i.e., Calvert International and Blackrock High go up and down completely randomly.

Pair Corralation between Calvert International and Blackrock High

Assuming the 90 days horizon Calvert International is expected to generate 1.12 times less return on investment than Blackrock High. In addition to that, Calvert International is 2.0 times more volatile than Blackrock High Income. It trades about 0.14 of its total potential returns per unit of risk. Blackrock High Income is currently generating about 0.31 per unit of volatility. If you would invest  821.00  in Blackrock High Income on April 25, 2025 and sell it today you would earn a total of  62.00  from holding Blackrock High Income or generate 7.55% return on investment over 90 days.

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

Calvert International Equity  vs.  Blackrock High Income

Calvert International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Blackrock High Income

Risk-Adjusted Performance

Solid

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

Pair Trading with Calvert International and Blackrock High

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

The idea behind Calvert International Equity and Blackrock High Income 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.