Correlation Between Calvert Us and Blackrock Health

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

By analyzing existing cross correlation between Calvert Large Cap E and Blackrock Health Sciences, you can compare the effects of market volatilities on Calvert Us and Blackrock Health 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 Blackrock Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Us and Blackrock Health.

Diversification Opportunities for Calvert Us and Blackrock Health

0.59

Correlation Coefficient

Calvert Us  Blackrock Health

Very weak diversification

The 3 months correlation between Calvert and Blackrock is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap E and Blackrock Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Health Sciences 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 E are associated (or correlated) with Blackrock Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Health Sciences has no effect on the direction of Calvert Us i.e., Calvert Us and Blackrock Health go up and down completely randomly.

Pair Corralation between Calvert Us and Blackrock Health

Assuming the 90 days horizon Calvert Us is expected to generate 4.6 times less return on investment than Blackrock Health. In addition to that, Calvert Us is 1.01 times more volatile than Blackrock Health Sciences. It trades about 0.06 of its total potential returns per unit of risk. Blackrock Health Sciences is currently generating about 0.28 per unit of volatility. If you would invest  5,951  in Blackrock Health Sciences on August 26, 2025 and sell it today you would earn a total of  821.00  from holding Blackrock Health Sciences or generate 13.8% return on investment over 90 days.

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

Calvert Large Cap E  vs.  Blackrock Health Sciences

Calvert Large Cap

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 4 (%) 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.

Blackrock Health Sciences

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Health Sciences are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Blackrock Health showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calvert Us and Blackrock Health

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

The idea behind Calvert Large Cap E and Blackrock Health Sciences 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.