Correlation Between Calvert Balanced and Praxis Genesis

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

Diversification Opportunities for Calvert Balanced and Praxis Genesis

1.0

Correlation Coefficient

Calvert Balanced  Praxis Genesis

No risk reduction

The 3 months correlation between Calvert and Praxis is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Balanced Portfolio and Praxis Genesis Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Genesis Growth 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 Praxis Genesis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Genesis Growth has no effect on the direction of Calvert Balanced i.e., Calvert Balanced and Praxis Genesis go up and down completely randomly.

Pair Corralation between Calvert Balanced and Praxis Genesis

Assuming the 90 days horizon Calvert Balanced is expected to generate 1.1 times less return on investment than Praxis Genesis. But when comparing it to its historical volatility, Calvert Balanced Portfolio is 1.19 times less risky than Praxis Genesis. It trades about 0.32 of its potential returns per unit of risk. Praxis Genesis Growth is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  1,873  in Praxis Genesis Growth on April 29, 2025 and sell it today you would earn a total of  195.00  from holding Praxis Genesis Growth or generate 10.41% return on investment over 90 days.

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

Calvert Balanced Portfolio  vs.  Praxis Genesis Growth

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 24 (%) 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 August 2025.

Praxis Genesis Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Praxis Genesis Growth 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, Praxis Genesis may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calvert Balanced and Praxis Genesis

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

The idea behind Calvert Balanced Portfolio and Praxis Genesis Growth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..