Correlation Between Rems Real and Calvert International

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

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

Diversification Opportunities for Rems Real and Calvert International

0.67

Correlation Coefficient

Rems Real  Calvert International

Poor diversification

The 3 months correlation between Rems and Calvert is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Rems Real Estate and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Rems Real 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 Rems Real Estate 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 Rems Real i.e., Rems Real and Calvert International go up and down completely randomly.

Pair Corralation between Rems Real and Calvert International

Assuming the 90 days horizon Rems Real is expected to generate 5.28 times less return on investment than Calvert International. In addition to that, Rems Real is 1.01 times more volatile than Calvert International Equity. It trades about 0.02 of its total potential returns per unit of risk. Calvert International Equity is currently generating about 0.13 per unit of volatility. If you would invest  1,963  in Calvert International Equity on May 1, 2025 and sell it today you would earn a total of  125.00  from holding Calvert International Equity or generate 6.37% return on investment over 90 days.

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

Rems Real Estate  vs.  Calvert International Equity

Rems Real Estate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Rems Real Estate are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Rems Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calvert International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Rems Real and Calvert International

The main advantage of trading using opposite Rems Real and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rems Real 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 Rems Real Estate and Calvert International Equity 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.