Correlation Between Calvert International and Franklin International

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

By analyzing existing cross correlation between Calvert International Opportunities and Franklin International Core, you can compare the effects of market volatilities on Calvert International and Franklin International 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 Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Franklin International.

Diversification Opportunities for Calvert International and Franklin International

0.9

Correlation Coefficient

Calvert International  Franklin International

Almost no diversification

The 3 months correlation between Calvert and Franklin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Opportun and Franklin International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International 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 Opportunities are associated (or correlated) with Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Calvert International i.e., Calvert International and Franklin International go up and down completely randomly.

Pair Corralation between Calvert International and Franklin International

Assuming the 90 days horizon Calvert International is expected to generate 1.23 times less return on investment than Franklin International. But when comparing it to its historical volatility, Calvert International Opportunities is 1.11 times less risky than Franklin International. It trades about 0.08 of its potential returns per unit of risk. Franklin International Core is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,304  in Franklin International Core on May 4, 2025 and sell it today you would earn a total of  54.00  from holding Franklin International Core or generate 4.14% 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 Opportun  vs.  Franklin International Core

Calvert International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Opportunities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Franklin International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin International Core are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Franklin International 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 International and Franklin International

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

The idea behind Calvert International Opportunities and Franklin International Core 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..