Correlation Between Calvert Aggressive and Gmo Global

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

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

Diversification Opportunities for Calvert Aggressive and Gmo Global

0.81

Correlation Coefficient

Calvert Aggressive  Gmo Global

Very poor diversification

The 3 months correlation between Calvert and GMO is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Aggressive Allocation and Gmo Global Developed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Global Developed and Calvert Aggressive 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 Aggressive Allocation are associated (or correlated) with Gmo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Global Developed has no effect on the direction of Calvert Aggressive i.e., Calvert Aggressive and Gmo Global go up and down completely randomly.

Pair Corralation between Calvert Aggressive and Gmo Global

Assuming the 90 days horizon Calvert Aggressive is expected to generate 1.51 times less return on investment than Gmo Global. But when comparing it to its historical volatility, Calvert Aggressive Allocation is 1.2 times less risky than Gmo Global. It trades about 0.11 of its potential returns per unit of risk. Gmo Global Developed is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,969  in Gmo Global Developed on September 5, 2025 and sell it today you would earn a total of  189.00  from holding Gmo Global Developed or generate 6.37% return on investment over 90 days.

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

Calvert Aggressive Allocation  vs.  Gmo Global Developed

Calvert Aggressive

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Aggressive Allocation are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gmo Global Developed

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Gmo Global Developed are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gmo Global may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Calvert Aggressive and Gmo Global

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

The idea behind Calvert Aggressive Allocation and Gmo Global Developed 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.