Correlation Between Guidemark(r) Small/mid and Calvert International

Can any of the company-specific risk be diversified away by investing in both Guidemark(r) Small/mid 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 Guidemark(r) Small/mid and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidemark Smallmid Cap and Calvert International Opportunities, you can compare the effects of market volatilities on Guidemark(r) Small/mid 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 Guidemark(r) Small/mid with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Small/mid and Calvert International.

Diversification Opportunities for Guidemark(r) Small/mid and Calvert International

0.46

Correlation Coefficient

Guidemark(r) Small/mid  Calvert International

Very weak diversification

The 3 months correlation between Guidemark(r) and Calvert is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and Calvert International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Guidemark(r) Small/mid 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 Smallmid Cap 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 Guidemark(r) Small/mid i.e., Guidemark(r) Small/mid and Calvert International go up and down completely randomly.

Pair Corralation between Guidemark(r) Small/mid and Calvert International

Assuming the 90 days horizon Guidemark Smallmid Cap is expected to generate 1.5 times more return on investment than Calvert International. However, Guidemark(r) Small/mid is 1.5 times more volatile than Calvert International Opportunities. It trades about 0.15 of its potential returns per unit of risk. Calvert International Opportunities is currently generating about 0.08 per unit of risk. If you would invest  1,862  in Guidemark Smallmid Cap on May 21, 2025 and sell it today you would earn a total of  168.00  from holding Guidemark Smallmid Cap or generate 9.02% return on investment over 90 days.

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

Guidemark Smallmid Cap  vs.  Calvert International Opportun

Guidemark Smallmid Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Guidemark Smallmid Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Guidemark(r) Small/mid may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Opportunities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guidemark(r) Small/mid and Calvert International

The main advantage of trading using opposite Guidemark(r) Small/mid and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark(r) Small/mid 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.

The idea behind Guidemark Smallmid Cap and Calvert International Opportunities 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.