Correlation Between Lord Abbett and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calvert Emerging 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 Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and Calvert Emerging Markets, you can compare the effects of market volatilities on Lord Abbett and Calvert Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calvert Emerging.
Diversification Opportunities for Lord Abbett and Calvert Emerging
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lord and Calvert is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Diversified are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calvert Emerging go up and down completely randomly.
Pair Corralation between Lord Abbett and Calvert Emerging
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 0.42 times more return on investment than Calvert Emerging. However, Lord Abbett Diversified is 2.38 times less risky than Calvert Emerging. It trades about 0.1 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 1,380 in Lord Abbett Diversified on October 25, 2024 and sell it today you would earn a total of 256.00 from holding Lord Abbett Diversified or generate 18.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.6% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Calvert Emerging Markets
Performance |
| Timeline |
| Lord Abbett Diversified |
| Calvert Emerging Markets |
Lord Abbett and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calvert Emerging
The main advantage of trading using opposite Lord Abbett and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calvert Emerging 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 Emerging will offset losses from the drop in Calvert Emerging's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| Calvert Emerging vs. Lord Abbett Health | Calvert Emerging vs. Allianzgi Health Sciences | Calvert Emerging vs. Invesco Global Health | Calvert Emerging vs. Health Care 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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