Correlation Between Calvert Small and Gabelli Dividend

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

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

Diversification Opportunities for Calvert Small and Gabelli Dividend

-0.02

Correlation Coefficient

Calvert Small  Gabelli Dividend

Good diversification

The 3 months correlation between Calvert and Gabelli is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Small Cap and Gabelli Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Dividend Income and Calvert Small 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 Small Cap are associated (or correlated) with Gabelli Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Dividend Income has no effect on the direction of Calvert Small i.e., Calvert Small and Gabelli Dividend go up and down completely randomly.

Pair Corralation between Calvert Small and Gabelli Dividend

Assuming the 90 days horizon Calvert Small Cap is expected to under-perform the Gabelli Dividend. In addition to that, Calvert Small is 1.42 times more volatile than Gabelli Dividend Income. It trades about -0.13 of its total potential returns per unit of risk. Gabelli Dividend Income is currently generating about 0.03 per unit of volatility. If you would invest  2,640  in Gabelli Dividend Income on August 26, 2025 and sell it today you would earn a total of  34.00  from holding Gabelli Dividend Income or generate 1.29% return on investment over 90 days.

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

Calvert Small Cap  vs.  Gabelli Dividend Income

Calvert Small Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days Calvert Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Gabelli Dividend Income

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Dividend Income are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable fundamental indicators, Gabelli Dividend is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Calvert Small and Gabelli Dividend

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

The idea behind Calvert Small Cap and Gabelli Dividend Income 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.