Correlation Between Lord Abbett and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Lord Abbett 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 Lord Abbett and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Calvert Global Equity, you can compare the effects of market volatilities on Lord Abbett 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 Lord Abbett with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calvert Global.
Diversification Opportunities for Lord Abbett and Calvert Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Calvert is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Calvert Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Equity 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 Short 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 Equity has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calvert Global go up and down completely randomly.
Pair Corralation between Lord Abbett and Calvert Global
Assuming the 90 days horizon Lord Abbett is expected to generate 2.53 times less return on investment than Calvert Global. But when comparing it to its historical volatility, Lord Abbett Short is 3.39 times less risky than Calvert Global. It trades about 0.39 of its potential returns per unit of risk. Calvert Global Equity is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,557 in Calvert Global Equity on April 13, 2025 and sell it today you would earn a total of 253.00 from holding Calvert Global Equity or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Calvert Global Equity
Performance |
| Timeline |
| Lord Abbett Short |
| Calvert Global Equity |
Lord Abbett and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calvert Global
The main advantage of trading using opposite Lord Abbett and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett 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.| Lord Abbett vs. Alpine Ultra Short | Lord Abbett vs. John Hancock Municipal | Lord Abbett vs. Performance Trust Municipal | Lord Abbett vs. Intermediate Term Tax Free Bond |
| Calvert Global vs. Johcm Emerging Markets | Calvert Global vs. Calvert Developed Market | Calvert Global vs. Fidelity New Markets | Calvert Global vs. Franklin Emerging Market |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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