Correlation Between Lord Abbett and Calvert Aggressive
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calvert Aggressive 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 Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Health and Calvert Aggressive Allocation, you can compare the effects of market volatilities on Lord Abbett and Calvert Aggressive 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 Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calvert Aggressive.
Diversification Opportunities for Lord Abbett and Calvert Aggressive
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Calvert is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and Calvert Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Aggressive 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 Health are associated (or correlated) with Calvert Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Aggressive has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calvert Aggressive go up and down completely randomly.
Pair Corralation between Lord Abbett and Calvert Aggressive
Assuming the 90 days horizon Lord Abbett is expected to generate 1.6 times less return on investment than Calvert Aggressive. In addition to that, Lord Abbett is 1.43 times more volatile than Calvert Aggressive Allocation. It trades about 0.03 of its total potential returns per unit of risk. Calvert Aggressive Allocation is currently generating about 0.08 per unit of volatility. If you would invest 2,203 in Calvert Aggressive Allocation on September 14, 2024 and sell it today you would earn a total of 634.00 from holding Calvert Aggressive Allocation or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Health vs. Calvert Aggressive Allocation
Performance |
| Timeline |
| Lord Abbett Health |
| Calvert Aggressive |
Lord Abbett and Calvert Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calvert Aggressive
The main advantage of trading using opposite Lord Abbett and Calvert Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calvert Aggressive 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 Aggressive will offset losses from the drop in Calvert Aggressive's long position.| Lord Abbett vs. Dws Government Money | Lord Abbett vs. Hsbc Government Money | Lord Abbett vs. Wesmark Government Bond | Lord Abbett vs. Davis Government Bond |
| Calvert Aggressive vs. Lord Abbett Health | Calvert Aggressive vs. Baron Health Care | Calvert Aggressive vs. Live Oak Health | Calvert Aggressive vs. Blackrock Health Sciences |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |