Correlation Between Calvert Balanced and Omni Small-cap

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

By analyzing existing cross correlation between Calvert Balanced Portfolio and Omni Small Cap Value, you can compare the effects of market volatilities on Calvert Balanced and Omni Small-cap 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 Balanced with a short position of Omni Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Balanced and Omni Small-cap.

Diversification Opportunities for Calvert Balanced and Omni Small-cap

0.85

Correlation Coefficient

Calvert Balanced  Omni Small-cap

Very poor diversification

The 3 months correlation between Calvert and Omni is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Balanced Portfolio and Omni Small Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Small Cap and Calvert Balanced 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 Balanced Portfolio are associated (or correlated) with Omni Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Small Cap has no effect on the direction of Calvert Balanced i.e., Calvert Balanced and Omni Small-cap go up and down completely randomly.

Pair Corralation between Calvert Balanced and Omni Small-cap

Assuming the 90 days horizon Calvert Balanced is expected to generate 1.64 times less return on investment than Omni Small-cap. But when comparing it to its historical volatility, Calvert Balanced Portfolio is 3.09 times less risky than Omni Small-cap. It trades about 0.28 of its potential returns per unit of risk. Omni Small Cap Value is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,628  in Omni Small Cap Value on May 21, 2025 and sell it today you would earn a total of  191.00  from holding Omni Small Cap Value or generate 11.73% return on investment over 90 days.

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

Calvert Balanced Portfolio  vs.  Omni Small Cap Value

Calvert Balanced Por

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Balanced Portfolio are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Calvert Balanced may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Omni Small Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Omni Small Cap Value are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Omni Small-cap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calvert Balanced and Omni Small-cap

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

The idea behind Calvert Balanced Portfolio and Omni Small Cap Value 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.