Correlation Between Apple and Calvert Developed

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

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

Diversification Opportunities for Apple and Calvert Developed

0.87

Correlation Coefficient

Apple  Calvert Developed

Very poor diversification

The 3 months correlation between Apple and Calvert is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market and Apple 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 Apple Inc are associated (or correlated) with Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of Apple i.e., Apple and Calvert Developed go up and down completely randomly.

Pair Corralation between Apple and Calvert Developed

Given the investment horizon of 90 days Apple Inc is expected to generate 1.95 times more return on investment than Calvert Developed. However, Apple is 1.95 times more volatile than Calvert Developed Market. It trades about 0.19 of its potential returns per unit of risk. Calvert Developed Market is currently generating about 0.12 per unit of risk. If you would invest  23,137  in Apple Inc on August 15, 2025 and sell it today you would earn a total of  4,210  from holding Apple Inc or generate 18.2% return on investment over 90 days.

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

Apple Inc  vs.  Calvert Developed Market

Apple Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Apple disclosed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Developed Market

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Developed Market are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Developed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apple and Calvert Developed

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

The idea behind Apple Inc and Calvert Developed Market 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.