Correlation Between Lord Abbett and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calvert Short 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 Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Calvert Short Duration, you can compare the effects of market volatilities on Lord Abbett and Calvert Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calvert Short.
Diversification Opportunities for Lord Abbett and Calvert Short
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Calvert is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration 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 Short are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calvert Short go up and down completely randomly.
Pair Corralation between Lord Abbett and Calvert Short
Assuming the 90 days horizon Lord Abbett Short is expected to generate 2.05 times more return on investment than Calvert Short. However, Lord Abbett is 2.05 times more volatile than Calvert Short Duration. It trades about 0.3 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.19 per unit of risk. If you would invest 980.00 in Lord Abbett Short on November 9, 2024 and sell it today you would earn a total of 12.00 from holding Lord Abbett Short or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Calvert Short Duration
Performance |
| Timeline |
| Lord Abbett Short |
| Calvert Short Duration |
Lord Abbett and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calvert Short
The main advantage of trading using opposite Lord Abbett and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calvert Short 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 Short will offset losses from the drop in Calvert Short's long position.| Lord Abbett vs. Siit High Yield | Lord Abbett vs. Mainstay High Yield | Lord Abbett vs. Neuberger Berman Income | Lord Abbett vs. Buffalo High Yield |
| Calvert Short vs. Dunham High Yield | Calvert Short vs. Neuberger Berman Income | Calvert Short vs. Strategic Advisers Income | Calvert Short vs. Jpmorgan High Yield |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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