Correlation Between Nasdaq 100 and Calvert Global

Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Calvert Global 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 Nasdaq 100 and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Calvert Global Energy, you can compare the effects of market volatilities on Nasdaq 100 and Calvert Global 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 Nasdaq 100 with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Calvert Global.

Diversification Opportunities for Nasdaq 100 and Calvert Global

0.87

Correlation Coefficient

Nasdaq 100  Calvert Global

Very poor diversification

The 3 months correlation between Nasdaq and Calvert is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Calvert Global go up and down completely randomly.

Pair Corralation between Nasdaq 100 and Calvert Global

Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 2.45 times more return on investment than Calvert Global. However, Nasdaq 100 is 2.45 times more volatile than Calvert Global Energy. It trades about 0.41 of its potential returns per unit of risk. Calvert Global Energy is currently generating about 0.4 per unit of risk. If you would invest  37,497  in Nasdaq 100 2x Strategy on April 20, 2025 and sell it today you would earn a total of  24,154  from holding Nasdaq 100 2x Strategy or generate 64.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Nasdaq 100 2x Strategy  vs.  Calvert Global Energy

Nasdaq 100 2x

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq 100 2x Strategy are ranked lower than 32 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nasdaq 100 showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Global Energy

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Energy are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calvert Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nasdaq 100 and Calvert Global

The main advantage of trading using opposite Nasdaq 100 and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.

The idea behind Nasdaq 100 2x Strategy and Calvert Global Energy 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.