Correlation Between Lord Abbett and Calvert Floating
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calvert Floating 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 Lord Abbett and Calvert Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inv and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Lord Abbett and Calvert Floating 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 Lord Abbett with a short position of Calvert Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calvert Floating.
Diversification Opportunities for Lord Abbett and Calvert Floating
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Calvert is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inv and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate and Lord Abbett 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 Lord Abbett Inv are associated (or correlated) with Calvert Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calvert Floating go up and down completely randomly.
Pair Corralation between Lord Abbett and Calvert Floating
Assuming the 90 days horizon Lord Abbett Inv is expected to generate 0.93 times more return on investment than Calvert Floating. However, Lord Abbett Inv is 1.07 times less risky than Calvert Floating. It trades about 0.32 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.27 per unit of risk. If you would invest 790.00 in Lord Abbett Inv on May 2, 2025 and sell it today you would earn a total of 20.00 from holding Lord Abbett Inv or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Inv vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Lord Abbett Inv |
| Calvert Floating Rate |
Lord Abbett and Calvert Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calvert Floating
The main advantage of trading using opposite Lord Abbett and Calvert Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calvert Floating 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 Floating will offset losses from the drop in Calvert Floating's long position.| Lord Abbett vs. Scout Small Cap | Lord Abbett vs. Nt International Small Mid | Lord Abbett vs. Guidemark Smallmid Cap | Lord Abbett vs. Eagle Small Cap |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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