Correlation Between Vulcan Value and Calvert Global

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

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

Diversification Opportunities for Vulcan Value and Calvert Global

0.65

Correlation Coefficient

Vulcan Value  Calvert Global

Poor diversification

The 3 months correlation between Vulcan and Calvert is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Value Partners 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 Vulcan Value 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 Value Partners 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 Vulcan Value i.e., Vulcan Value and Calvert Global go up and down completely randomly.

Pair Corralation between Vulcan Value and Calvert Global

Assuming the 90 days horizon Vulcan Value is expected to generate 1.35 times less return on investment than Calvert Global. In addition to that, Vulcan Value is 1.34 times more volatile than Calvert Global Energy. It trades about 0.15 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 26, 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 Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Vulcan Value Partners  vs.  Calvert Global Energy

Vulcan Value Partners

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Value Partners are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vulcan Value may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 Vulcan Value and Calvert Global

The main advantage of trading using opposite Vulcan Value and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Value 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 Vulcan Value Partners 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.