Correlation Between Ultramid-cap Profund and Calvert International

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

By analyzing existing cross correlation between Ultramid Cap Profund Ultramid Cap and Calvert International Opportunities, you can compare the effects of market volatilities on Ultramid-cap Profund 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 Ultramid-cap Profund with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultramid-cap Profund and Calvert International.

Diversification Opportunities for Ultramid-cap Profund and Calvert International

-0.26

Correlation Coefficient

Ultramid-cap Profund  Calvert International

Very good diversification

The 3 months correlation between Ultramid-cap and Calvert is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ultramid Cap Profund Ultramid and Calvert International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Ultramid-cap Profund 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 Ultramid Cap Profund Ultramid Cap 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 Ultramid-cap Profund i.e., Ultramid-cap Profund and Calvert International go up and down completely randomly.

Pair Corralation between Ultramid-cap Profund and Calvert International

Assuming the 90 days horizon Ultramid Cap Profund Ultramid Cap is expected to under-perform the Calvert International. In addition to that, Ultramid-cap Profund is 2.3 times more volatile than Calvert International Opportunities. It trades about -0.11 of its total potential returns per unit of risk. Calvert International Opportunities is currently generating about 0.07 per unit of volatility. If you would invest  1,634  in Calvert International Opportunities on December 24, 2024 and sell it today you would earn a total of  56.00  from holding Calvert International Opportunities or generate 3.43% return on investment over 90 days.

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

Ultramid Cap Profund Ultramid   vs.  Calvert International Opportun

Ultramid Cap Profund

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ultramid Cap Profund Ultramid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Calvert International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Opportunities are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic 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 Ultramid-cap Profund and Calvert International

The main advantage of trading using opposite Ultramid-cap Profund and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultramid-cap Profund 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 Ultramid Cap Profund Ultramid Cap and Calvert International Opportunities 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.