Correlation Between Calvert Us and Federated International

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

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

Diversification Opportunities for Calvert Us and Federated International

0.39

Correlation Coefficient

Calvert Us  Federated International

Weak diversification

The 3 months correlation between Calvert and Federated is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and Federated International Strate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated International and Calvert Us 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 Large Cap are associated (or correlated) with Federated International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated International has no effect on the direction of Calvert Us i.e., Calvert Us and Federated International go up and down completely randomly.

Pair Corralation between Calvert Us and Federated International

Assuming the 90 days horizon Calvert Large Cap is expected to generate 1.7 times more return on investment than Federated International. However, Calvert Us is 1.7 times more volatile than Federated International Strategic. It trades about 0.1 of its potential returns per unit of risk. Federated International Strategic is currently generating about 0.06 per unit of risk. If you would invest  7,151  in Calvert Large Cap on August 21, 2025 and sell it today you would earn a total of  372.00  from holding Calvert Large Cap or generate 5.2% return on investment over 90 days.

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

Calvert Large Cap  vs.  Federated International Strate

Calvert Large Cap

Risk-Adjusted Performance

Fair

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

Federated International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Federated International Strategic are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Federated 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 Calvert Us and Federated International

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

The idea behind Calvert Large Cap and Federated International Strategic 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.