Correlation Between Wmcanx and Calvert International

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

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

Diversification Opportunities for Wmcanx and Calvert International

0.87

Correlation Coefficient

Wmcanx  Calvert International

Very poor diversification

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

Pair Corralation between Wmcanx and Calvert International

Assuming the 90 days trading horizon Wmcanx is expected to generate 1.17 times more return on investment than Calvert International. However, Wmcanx is 1.17 times more volatile than Calvert International Equity. It trades about 0.04 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.03 per unit of risk. If you would invest  1,662  in Wmcanx on February 20, 2025 and sell it today you would earn a total of  74.00  from holding Wmcanx or generate 4.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	39.43%
Values	Daily Returns

Wmcanx  vs.  Calvert International Equity

Wmcanx

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wmcanx has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Wmcanx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert International

Risk-Adjusted Performance

Insignificant

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 basic indicators, Calvert 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 Wmcanx and Calvert International

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

The idea behind Wmcanx and Calvert International Equity 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.