Correlation Between Sit Us and Calvert Us

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

By analyzing existing cross correlation between Sit Government Securities and Calvert Large Cap, you can compare the effects of market volatilities on Sit Us and Calvert Us 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 Sit Us with a short position of Calvert Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Us and Calvert Us.

Diversification Opportunities for Sit Us and Calvert Us

0.7

Correlation Coefficient

Sit Us  Calvert Us

Poor diversification

The 3 months correlation between Sit and Calvert is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sit Government Securities and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Sit Us 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 Sit Government Securities are associated (or correlated) with Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Sit Us i.e., Sit Us and Calvert Us go up and down completely randomly.

Pair Corralation between Sit Us and Calvert Us

Assuming the 90 days horizon Sit Us is expected to generate 2.72 times less return on investment than Calvert Us. But when comparing it to its historical volatility, Sit Government Securities is 3.42 times less risky than Calvert Us. It trades about 0.17 of its potential returns per unit of risk. Calvert Large Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,269  in Calvert Large Cap on May 25, 2025 and sell it today you would earn a total of  192.00  from holding Calvert Large Cap or generate 5.87% return on investment over 90 days.

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

Sit Government Securities  vs.  Calvert Large Cap

Sit Government Securities

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sit Government Securities are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Sit Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Large Cap

Risk-Adjusted Performance

Fair

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

Pair Trading with Sit Us and Calvert Us

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

The idea behind Sit Government Securities and Calvert Large Cap 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.