Correlation Between Calvert Us and Morningstar Aggressive

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

By analyzing existing cross correlation between Calvert Large Cap E and Morningstar Aggressive Growth, you can compare the effects of market volatilities on Calvert Us and Morningstar Aggressive 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 Us with a short position of Morningstar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Us and Morningstar Aggressive.

Diversification Opportunities for Calvert Us and Morningstar Aggressive

0.99

Correlation Coefficient

Calvert Us  Morningstar Aggressive

No risk reduction

The 3 months correlation between Calvert and Morningstar is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap E and Morningstar Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar Aggressive and Calvert Us 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 E are associated (or correlated) with Morningstar Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar Aggressive has no effect on the direction of Calvert Us i.e., Calvert Us and Morningstar Aggressive go up and down completely randomly.

Pair Corralation between Calvert Us and Morningstar Aggressive

Assuming the 90 days horizon Calvert Large Cap E is expected to generate 1.04 times more return on investment than Morningstar Aggressive. However, Calvert Us is 1.04 times more volatile than Morningstar Aggressive Growth. It trades about 0.23 of its potential returns per unit of risk. Morningstar Aggressive Growth is currently generating about 0.23 per unit of risk. If you would invest  5,056  in Calvert Large Cap E on May 28, 2025 and sell it today you would earn a total of  465.00  from holding Calvert Large Cap E or generate 9.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Calvert Large Cap E  vs.  Morningstar Aggressive Growth

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Us may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Morningstar Aggressive

Risk-Adjusted Performance

Solid

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

Pair Trading with Calvert Us and Morningstar Aggressive

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

The idea behind Calvert Large Cap E and Morningstar Aggressive 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 CEOs Directory module to screen CEOs from public companies around the world.