Correlation Between Vulcan Materials and Calvert Short

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

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

Diversification Opportunities for Vulcan Materials and Calvert Short

0.4

Correlation Coefficient

Vulcan Materials  Calvert Short

Very weak diversification

The 3 months correlation between Vulcan and Calvert is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Vulcan Materials 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 Vulcan Materials are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Vulcan Materials i.e., Vulcan Materials and Calvert Short go up and down completely randomly.

Pair Corralation between Vulcan Materials and Calvert Short

Considering the 90-day investment horizon Vulcan Materials is expected to generate 10.35 times more return on investment than Calvert Short. However, Vulcan Materials is 10.35 times more volatile than Calvert Short Duration. It trades about 0.15 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.19 per unit of risk. If you would invest  23,375  in Vulcan Materials on April 20, 2025 and sell it today you would earn a total of  3,285  from holding Vulcan Materials or generate 14.05% return on investment over 90 days.

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

Vulcan Materials  vs.  Calvert Short Duration

Vulcan Materials

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Materials are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating primary indicators, Vulcan Materials exhibited solid returns over the last few months and may actually be approaching a breakup point.

Calvert Short Duration

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Short Duration are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vulcan Materials and Calvert Short

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

The idea behind Vulcan Materials and Calvert Short Duration 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.