Correlation Between Calvert Emerging and Calvert Fund

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

By analyzing existing cross correlation between Calvert Emerging Markets and Calvert Fund , you can compare the effects of market volatilities on Calvert Emerging and Calvert Fund 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 Emerging with a short position of Calvert Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Calvert Fund.

Diversification Opportunities for Calvert Emerging and Calvert Fund

0.91

Correlation Coefficient

Calvert Emerging  Calvert Fund

Almost no diversification

The 3 months correlation between Calvert and Calvert is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Calvert Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Fund and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Calvert Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Fund has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Calvert Fund go up and down completely randomly.

Pair Corralation between Calvert Emerging and Calvert Fund

Assuming the 90 days horizon Calvert Emerging Markets is expected to generate 1.0 times more return on investment than Calvert Fund. However, Calvert Emerging Markets is 1.0 times less risky than Calvert Fund. It trades about 0.17 of its potential returns per unit of risk. Calvert Fund is currently generating about 0.08 per unit of risk. If you would invest  1,837  in Calvert Emerging Markets on May 9, 2025 and sell it today you would earn a total of  157.00  from holding Calvert Emerging Markets or generate 8.55% return on investment over 90 days.

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

Calvert Emerging Markets  vs.  Calvert Fund

Calvert Emerging Markets

Risk-Adjusted Performance

Good

Over the last 90 days Calvert Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak basic indicators, Calvert Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert Fund

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Fund 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 Emerging and Calvert Fund

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

The idea behind Calvert Emerging Markets and Calvert Fund 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.