Correlation Between Calvert Equity and Polen Growth

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

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

Diversification Opportunities for Calvert Equity and Polen Growth

0.11

Correlation Coefficient

Calvert Equity  Polen Growth

Average diversification

The 3 months correlation between Calvert and Polen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Fund and Polen Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Growth and Calvert Equity 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 Equity Fund are associated (or correlated) with Polen Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Growth has no effect on the direction of Calvert Equity i.e., Calvert Equity and Polen Growth go up and down completely randomly.

Pair Corralation between Calvert Equity and Polen Growth

Assuming the 90 days horizon Calvert Equity Fund is expected to generate 0.19 times more return on investment than Polen Growth. However, Calvert Equity Fund is 5.18 times less risky than Polen Growth. It trades about -0.01 of its potential returns per unit of risk. Polen Growth Fund is currently generating about -0.13 per unit of risk. If you would invest  9,836  in Calvert Equity Fund on September 12, 2025 and sell it today you would lose (62.00) from holding Calvert Equity Fund or give up 0.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Calvert Equity Fund  vs.  Polen Growth Fund

Calvert Equity

Risk-Adjusted Performance

Weakest

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

Polen Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Polen Growth Fund 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 basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Calvert Equity and Polen Growth

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

The idea behind Calvert Equity Fund and Polen Growth Fund 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.