Correlation Between Matson Money and Calvert Us

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

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

Diversification Opportunities for Matson Money and Calvert Us

0.73

Correlation Coefficient

Matson Money  Calvert Us

Poor diversification

The 3 months correlation between Matson and Calvert is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Matson Money 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 Matson Money Equity are associated (or correlated) with Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Matson Money i.e., Matson Money and Calvert Us go up and down completely randomly.

Pair Corralation between Matson Money and Calvert Us

Assuming the 90 days horizon Matson Money Equity is expected to generate 1.11 times more return on investment than Calvert Us. However, Matson Money is 1.11 times more volatile than Calvert Large Cap. It trades about -0.06 of its potential returns per unit of risk. Calvert Large Cap is currently generating about -0.09 per unit of risk. If you would invest  3,273  in Matson Money Equity on May 9, 2025 and sell it today you would lose (42.00) from holding Matson Money Equity or give up 1.28% of portfolio value over 90 days.

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

Matson Money Equity  vs.  Calvert Large Cap

Matson Money Equity

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Matson Money Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Matson Money may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Matson Money and Calvert Us

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

The idea behind Matson Money Equity and Calvert Large Cap 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.