Correlation Between Lord Abbett and Calvert Income
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calvert Income 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 Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Intermediate and Calvert Income Fund, you can compare the effects of market volatilities on Lord Abbett and Calvert Income 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 Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calvert Income.
Diversification Opportunities for Lord Abbett and Calvert Income
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Calvert is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Intermediate and Calvert Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Income 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 Intermediate are associated (or correlated) with Calvert Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Income has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calvert Income go up and down completely randomly.
Pair Corralation between Lord Abbett and Calvert Income
Assuming the 90 days horizon Lord Abbett is expected to generate 2.36 times less return on investment than Calvert Income. But when comparing it to its historical volatility, Lord Abbett Intermediate is 1.92 times less risky than Calvert Income. It trades about 0.17 of its potential returns per unit of risk. Calvert Income Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,486 in Calvert Income Fund on May 29, 2025 and sell it today you would earn a total of 46.00 from holding Calvert Income Fund or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Intermediate vs. Calvert Income Fund
Performance |
| Timeline |
| Lord Abbett Intermediate |
| Calvert Income |
Lord Abbett and Calvert Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calvert Income
The main advantage of trading using opposite Lord Abbett and Calvert Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calvert Income 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 Income will offset losses from the drop in Calvert Income's long position.| Lord Abbett vs. Omni Small Cap Value | Lord Abbett vs. Pace Smallmedium Value | Lord Abbett vs. Northern Small Cap | Lord Abbett vs. American Century Etf |
| Calvert Income vs. Blackrock Inflation Protected | Calvert Income vs. Short Duration Inflation | Calvert Income vs. Vy Blackrock Inflation | Calvert Income vs. Vy Blackrock Inflation |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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