Correlation Between Calvert International and Calvert Large

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

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

Diversification Opportunities for Calvert International and Calvert Large

0.73

Correlation Coefficient

Calvert International  Calvert Large

Poor diversification

The 3 months correlation between Calvert and Calvert is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Calvert International 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 International Equity are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Calvert International i.e., Calvert International and Calvert Large go up and down completely randomly.

Pair Corralation between Calvert International and Calvert Large

Assuming the 90 days horizon Calvert International Equity is expected to under-perform the Calvert Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert International Equity is 1.26 times less risky than Calvert Large. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Calvert Large Cap is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  7,666  in Calvert Large Cap on August 21, 2025 and sell it today you would lose (128.00) from holding Calvert Large Cap or give up 1.67% of portfolio value over 90 days.

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

Calvert International Equity  vs.  Calvert Large Cap

Calvert International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Equity are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Large Cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert 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 International and Calvert Large

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

The idea behind Calvert International Equity and Calvert 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.