Correlation Between Kinetics Paradigm and Calvert Global

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

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

Diversification Opportunities for Kinetics Paradigm and Calvert Global

-0.86

Correlation Coefficient

Kinetics Paradigm  Calvert Global

Pay attention - limited upside

The 3 months correlation between Kinetics and Calvert is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Kinetics Paradigm 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 Kinetics Paradigm Fund are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Calvert Global go up and down completely randomly.

Pair Corralation between Kinetics Paradigm and Calvert Global

Assuming the 90 days horizon Kinetics Paradigm Fund is expected to under-perform the Calvert Global. In addition to that, Kinetics Paradigm is 1.96 times more volatile than Calvert Global Energy. It trades about -0.18 of its total potential returns per unit of risk. Calvert Global Energy is currently generating about 0.27 per unit of volatility. If you would invest  1,156  in Calvert Global Energy on May 27, 2025 and sell it today you would earn a total of  174.00  from holding Calvert Global Energy or generate 15.05% return on investment over 90 days.

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

Kinetics Paradigm Fund  vs.  Calvert Global Energy

Kinetics Paradigm

Risk-Adjusted Performance

Weakest

Over the last 90 days Kinetics Paradigm Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Calvert Global Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Energy are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinetics Paradigm and Calvert Global

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

The idea behind Kinetics Paradigm Fund and Calvert Global Energy 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.