Correlation Between Calvert Focused and Calvert Global

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

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

Diversification Opportunities for Calvert Focused and Calvert Global

0.0

Correlation Coefficient

Calvert Focused  Calvert Global

Pay attention - limited upside

The 3 months correlation between Calvert and Calvert is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Focused Value and Calvert Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Value and Calvert Focused 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 Calvert Focused Value 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 Value has no effect on the direction of Calvert Focused i.e., Calvert Focused and Calvert Global go up and down completely randomly.

Pair Corralation between Calvert Focused and Calvert Global

If you would invest  1,019  in Calvert Focused Value on October 4, 2024 and sell it today you would earn a total of  109.00  from holding Calvert Focused Value or generate 10.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

Calvert Focused Value  vs.  Calvert Global Value

Calvert Focused Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert Focused Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Calvert Focused is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Global Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert Global Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calvert Focused and Calvert Global

The main advantage of trading using opposite Calvert Focused and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Focused 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 Calvert Focused Value and Calvert Global Value 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.