Correlation Between Morningstar International and Calvert Balanced

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

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

Diversification Opportunities for Morningstar International and Calvert Balanced

0.0

Correlation Coefficient

Morningstar International  Calvert Balanced

Pay attention - limited upside

The 3 months correlation between Morningstar and Calvert is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morningstar International Equi and Calvert Balanced Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Balanced Por and Morningstar International 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 Morningstar International Equity are associated (or correlated) with Calvert Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Balanced Por has no effect on the direction of Morningstar International i.e., Morningstar International and Calvert Balanced go up and down completely randomly.

Pair Corralation between Morningstar International and Calvert Balanced

If you would invest  1,113  in Morningstar International Equity on May 20, 2025 and sell it today you would earn a total of  69.00  from holding Morningstar International Equity or generate 6.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Morningstar International Equi  vs.  Calvert Balanced Portfolio

Morningstar International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Morningstar International Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Morningstar International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Balanced Por

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Balanced Portfolio are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert Balanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Morningstar International and Calvert Balanced

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

The idea behind Morningstar International Equity and Calvert Balanced Portfolio 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.

Check out your portfolio center.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.