Correlation Between Financial Industries and Calvert International
Can any of the company-specific risk be diversified away by investing in both Financial Industries and Calvert International 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 Financial Industries and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial Industries Fund and Calvert International Equity, you can compare the effects of market volatilities on Financial Industries and Calvert International 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 Financial Industries with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Industries and Calvert International.
Diversification Opportunities for Financial Industries and Calvert International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Financial and Calvert is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Financial Industries Fund and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Financial Industries 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 Financial Industries Fund are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Financial Industries i.e., Financial Industries and Calvert International go up and down completely randomly.
Pair Corralation between Financial Industries and Calvert International
Assuming the 90 days horizon Financial Industries Fund is expected to generate 1.06 times more return on investment than Calvert International. However, Financial Industries is 1.06 times more volatile than Calvert International Equity. It trades about 0.18 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.15 per unit of risk. If you would invest 1,754 in Financial Industries Fund on April 29, 2025 and sell it today you would earn a total of 173.00 from holding Financial Industries Fund or generate 9.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Financial Industries Fund vs. Calvert International Equity
Performance |
Timeline |
Financial Industries |
Calvert International |
Financial Industries and Calvert International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Financial Industries and Calvert International
The main advantage of trading using opposite Financial Industries and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Industries position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.Financial Industries vs. Davis Government Bond | Financial Industries vs. Inverse Government Long | Financial Industries vs. Virtus Seix Government | Financial Industries vs. Aig Government Money |
Calvert International vs. Artisan Select Equity | Calvert International vs. Morningstar International Equity | Calvert International vs. Dws Equity Sector | Calvert International vs. The Growth Equity |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Stocks Directory Find actively traded stocks across global markets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |