Correlation Between Calvert International and L Abbett
Can any of the company-specific risk be diversified away by investing in both Calvert International and L 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 International and L Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert International Equity and L Abbett Fundamental, you can compare the effects of market volatilities on Calvert International and L 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 International with a short position of L Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and L Abbett.
Diversification Opportunities for Calvert International and L Abbett
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and LAVVX is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Equity and L Abbett Fundamental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Abbett Fundamental and Calvert International 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 International Equity are associated (or correlated) with L Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Abbett Fundamental has no effect on the direction of Calvert International i.e., Calvert International and L Abbett go up and down completely randomly.
Pair Corralation between Calvert International and L Abbett
Assuming the 90 days horizon Calvert International Equity is expected to generate 1.45 times more return on investment than L Abbett. However, Calvert International is 1.45 times more volatile than L Abbett Fundamental. It trades about -0.02 of its potential returns per unit of risk. L Abbett Fundamental is currently generating about -0.13 per unit of risk. If you would invest 1,946 in Calvert International Equity on September 12, 2024 and sell it today you would lose (7.00) from holding Calvert International Equity or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calvert International Equity vs. L Abbett Fundamental
Performance |
| Timeline |
| Calvert International |
| L Abbett Fundamental |
Calvert International and L Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert International and L Abbett
The main advantage of trading using opposite Calvert International and L Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert International position performs unexpectedly, L 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 L Abbett will offset losses from the drop in L Abbett's long position.| Calvert International vs. L Abbett Fundamental | Calvert International vs. T Rowe Price | Calvert International vs. Omni Small Cap Value | Calvert International vs. Ab Small Cap |
| L Abbett vs. Vanguard Value Index | L Abbett vs. Dodge Cox Stock | L Abbett vs. American Mutual Fund | L Abbett vs. American Funds American |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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