Correlation Between Calvert Balanced and Dodge Cox

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

Diversification Opportunities for Calvert Balanced and Dodge Cox

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Calvert and Dodge is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Balanced Portfolio and Dodge International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge International Stock 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 Dodge Cox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge International Stock has no effect on the direction of Calvert Balanced i.e., Calvert Balanced and Dodge Cox go up and down completely randomly.

Pair Corralation between Calvert Balanced and Dodge Cox

Assuming the 90 days horizon Calvert Balanced is expected to generate 1.11 times less return on investment than Dodge Cox. But when comparing it to its historical volatility, Calvert Balanced Portfolio is 1.33 times less risky than Dodge Cox. It trades about 0.28 of its potential returns per unit of risk. Dodge International Stock is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  5,667  in Dodge International Stock on May 3, 2025 and sell it today you would earn a total of  507.00  from holding Dodge International Stock or generate 8.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.39%
ValuesDaily Returns

Calvert Balanced Portfolio  vs.  Dodge International Stock

 Performance 
       Timeline  
Calvert Balanced Por 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Balanced Portfolio are ranked lower than 22 (%) 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.
Dodge International Stock 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dodge International Stock are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Dodge Cox may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert Balanced and Dodge Cox Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calvert Balanced and Dodge Cox

The main advantage of trading using opposite Calvert Balanced and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Balanced position performs unexpectedly, Dodge Cox 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 Dodge Cox will offset losses from the drop in Dodge Cox's long position.
The idea behind Calvert Balanced Portfolio and Dodge International Stock 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.
Check out your portfolio center.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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