Correlation Between L Abbett and Calvert International
Can any of the company-specific risk be diversified away by investing in both L Abbett and Calvert International 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 L Abbett and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Fundamental and Calvert International Equity, you can compare the effects of market volatilities on L Abbett and Calvert International 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 L Abbett with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Calvert International.
Diversification Opportunities for L Abbett and Calvert International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between LAVVX and Calvert is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Fundamental and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and L 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 L Abbett Fundamental are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of L Abbett i.e., L Abbett and Calvert International go up and down completely randomly.
Pair Corralation between L Abbett and Calvert International
Assuming the 90 days horizon L Abbett Fundamental is expected to generate 0.98 times more return on investment than Calvert International. However, L Abbett Fundamental is 1.02 times less risky than Calvert International. It trades about 0.38 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.16 per unit of risk. If you would invest 1,536 in L Abbett Fundamental on October 21, 2024 and sell it today you would earn a total of 69.00 from holding L Abbett Fundamental or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Fundamental vs. Calvert International Equity
Performance |
| Timeline |
| L Abbett Fundamental |
| Calvert International |
L Abbett and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Calvert International
The main advantage of trading using opposite L Abbett and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| L Abbett vs. Nasdaq 100 Profund Nasdaq 100 | L Abbett vs. Volumetric Fund Volumetric | L Abbett vs. Commodities Strategy Fund | L Abbett vs. Issachar Fund Class |
| Calvert International vs. Transamerica Asset Allocation | Calvert International vs. Federated Global Allocation | Calvert International vs. Legg Mason Global | Calvert International vs. Mirova Global Green |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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