Correlation Between Tortoise Energy and Calvert International

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

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

Diversification Opportunities for Tortoise Energy and Calvert International

0.12

Correlation Coefficient

Tortoise Energy  Calvert International

Average diversification

The 3 months correlation between Tortoise and Calvert is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Energy Infrastructure and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Tortoise Energy 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 Tortoise Energy Infrastructure are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Tortoise Energy i.e., Tortoise Energy and Calvert International go up and down completely randomly.

Pair Corralation between Tortoise Energy and Calvert International

Assuming the 90 days horizon Tortoise Energy Infrastructure is expected to generate 1.21 times more return on investment than Calvert International. However, Tortoise Energy is 1.21 times more volatile than Calvert International Equity. It trades about 0.08 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.03 per unit of risk. If you would invest  4,435  in Tortoise Energy Infrastructure on May 12, 2025 and sell it today you would earn a total of  210.00  from holding Tortoise Energy Infrastructure or generate 4.74% return on investment over 90 days.

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

Tortoise Energy Infrastructure  vs.  Calvert International Equity

Tortoise Energy Infr

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Energy Infrastructure are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tortoise Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Equity are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tortoise Energy and Calvert International

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

The idea behind Tortoise Energy Infrastructure and Calvert International Equity 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.