Correlation Between Calvert Developed and Harbor Large

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

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

Diversification Opportunities for Calvert Developed and Harbor Large

-0.32

Correlation Coefficient

Calvert Developed  Harbor Large

Very good diversification

The 3 months correlation between Calvert and Harbor is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Harbor Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Large Cap and Calvert Developed 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 Developed Market are associated (or correlated) with Harbor Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Large Cap has no effect on the direction of Calvert Developed i.e., Calvert Developed and Harbor Large go up and down completely randomly.

Pair Corralation between Calvert Developed and Harbor Large

Assuming the 90 days horizon Calvert Developed Market is expected to generate 1.02 times more return on investment than Harbor Large. However, Calvert Developed is 1.02 times more volatile than Harbor Large Cap. It trades about 0.1 of its potential returns per unit of risk. Harbor Large Cap is currently generating about -0.02 per unit of risk. If you would invest  3,589  in Calvert Developed Market on August 12, 2025 and sell it today you would earn a total of  162.00  from holding Calvert Developed Market or generate 4.51% return on investment over 90 days.

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

Calvert Developed Market  vs.  Harbor Large Cap

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 7 (%) 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.

Harbor Large Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days Harbor Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Harbor Large 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 Developed and Harbor Large

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

The idea behind Calvert Developed Market and Harbor Large Cap 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.