Correlation Between Guidemark Large and Calvert Aggressive

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

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

Diversification Opportunities for Guidemark Large and Calvert Aggressive

0.98

Correlation Coefficient

Guidemark Large  Calvert Aggressive

Almost no diversification

The 3 months correlation between Guidemark and Calvert is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Calvert Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Aggressive and Guidemark Large 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 Guidemark Large Cap are associated (or correlated) with Calvert Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Aggressive has no effect on the direction of Guidemark Large i.e., Guidemark Large and Calvert Aggressive go up and down completely randomly.

Pair Corralation between Guidemark Large and Calvert Aggressive

Assuming the 90 days horizon Guidemark Large Cap is expected to generate 1.17 times more return on investment than Calvert Aggressive. However, Guidemark Large is 1.17 times more volatile than Calvert Aggressive Allocation. It trades about 0.32 of its potential returns per unit of risk. Calvert Aggressive Allocation is currently generating about 0.28 per unit of risk. If you would invest  1,139  in Guidemark Large Cap on April 24, 2025 and sell it today you would earn a total of  164.00  from holding Guidemark Large Cap or generate 14.4% return on investment over 90 days.

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

Guidemark Large Cap  vs.  Calvert Aggressive Allocation

Guidemark Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guidemark Large Cap are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Guidemark Large showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Aggressive

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Aggressive Allocation are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Aggressive may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Guidemark Large and Calvert Aggressive

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

The idea behind Guidemark Large Cap and Calvert Aggressive Allocation 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.