Correlation Between Highland Global and Calvert Fund

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

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

Diversification Opportunities for Highland Global and Calvert Fund

0.17

Correlation Coefficient

Highland Global  Calvert Fund

Average diversification

The 3 months correlation between Highland and Calvert is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Calvert Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Fund and Highland Global 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 Highland Global Allocation 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 Highland Global i.e., Highland Global and Calvert Fund go up and down completely randomly.

Pair Corralation between Highland Global and Calvert Fund

Given the investment horizon of 90 days Highland Global is expected to generate 2.15 times less return on investment than Calvert Fund. In addition to that, Highland Global is 1.38 times more volatile than Calvert Fund . It trades about 0.06 of its total potential returns per unit of risk. Calvert Fund is currently generating about 0.17 per unit of volatility. If you would invest  1,103  in Calvert Fund on May 3, 2025 and sell it today you would earn a total of  88.00  from holding Calvert Fund or generate 7.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Highland Global Allocation  vs.  Calvert Fund

Highland Global Allo

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong essential indicators, Highland Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Calvert Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Highland Global and Calvert Fund

The main advantage of trading using opposite Highland Global and Calvert Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global 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 Highland Global Allocation 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.