Correlation Between Calvert Global and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Lord Abbett 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 Calvert Global and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Lord Abbett Bond, you can compare the effects of market volatilities on Calvert Global and Lord Abbett 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 Calvert Global with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Lord Abbett.
Diversification Opportunities for Calvert Global and Lord Abbett
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Lord is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Lord Abbett Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Bond and Calvert Global 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 Calvert Global Energy are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Bond has no effect on the direction of Calvert Global i.e., Calvert Global and Lord Abbett go up and down completely randomly.
Pair Corralation between Calvert Global and Lord Abbett
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Lord Abbett. In addition to that, Calvert Global is 4.64 times more volatile than Lord Abbett Bond. It trades about -0.06 of its total potential returns per unit of risk. Lord Abbett Bond is currently generating about 0.26 per unit of volatility. If you would invest 713.00 in Lord Abbett Bond on September 4, 2024 and sell it today you would earn a total of 8.00 from holding Lord Abbett Bond or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calvert Global Energy vs. Lord Abbett Bond
Performance |
| Timeline |
| Calvert Global Energy |
| Lord Abbett Bond |
Calvert Global and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Lord Abbett
The main advantage of trading using opposite Calvert Global and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Calvert Global vs. Ashmore Emerging Markets | Calvert Global vs. Wells Fargo Funds | Calvert Global vs. Lord Abbett Emerging | Calvert Global vs. Elfun Government Money |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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