Correlation Between Calvert Large and Value Line

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

Diversification Opportunities for Calvert Large and Value Line

0.44

Correlation Coefficient

Calvert Large  Value Line

Very weak diversification

The 3 months correlation between Calvert and Value is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and Value Line Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Small 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 Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Small has no effect on the direction of Calvert Large i.e., Calvert Large and Value Line go up and down completely randomly.

Pair Corralation between Calvert Large and Value Line

Assuming the 90 days horizon Calvert Large Cap is expected to generate 0.07 times more return on investment than Value Line. However, Calvert Large Cap is 14.88 times less risky than Value Line. It trades about 0.29 of its potential returns per unit of risk. Value Line Small is currently generating about -0.02 per unit of risk. If you would invest  969.00  in Calvert Large Cap on August 23, 2025 and sell it today you would earn a total of  11.00  from holding Calvert Large Cap or generate 1.14% return on investment over 90 days.

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

Calvert Large Cap  vs.  Value Line Small

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 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Value Line Small

Risk-Adjusted Performance

Weakest

Over the last 90 days Value Line Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Value Line 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 Large and Value Line

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

The idea behind Calvert Large Cap and Value Line Small 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.