Correlation Between Calamos Global and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Lord 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 Calamos Global and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Vertible and Lord Abbett Diversified, you can compare the effects of market volatilities on Calamos Global and Lord 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 Calamos Global with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Lord Abbett.
Diversification Opportunities for Calamos Global and Lord Abbett
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Lord is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Vertible and Lord Abbett Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Diversified and Calamos Global 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 Calamos Global Vertible are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Diversified has no effect on the direction of Calamos Global i.e., Calamos Global and Lord Abbett go up and down completely randomly.
Pair Corralation between Calamos Global and Lord Abbett
Assuming the 90 days horizon Calamos Global Vertible is expected to generate 1.26 times more return on investment than Lord Abbett. However, Calamos Global is 1.26 times more volatile than Lord Abbett Diversified. It trades about 0.1 of its potential returns per unit of risk. Lord Abbett Diversified is currently generating about 0.11 per unit of risk. If you would invest 955.00 in Calamos Global Vertible on September 3, 2024 and sell it today you would earn a total of 227.00 from holding Calamos Global Vertible or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Vertible vs. Lord Abbett Diversified
Performance |
| Timeline |
| Calamos Global Vertible |
| Lord Abbett Diversified |
Calamos Global and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Lord Abbett
The main advantage of trading using opposite Calamos Global and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Lord 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Calamos Global vs. Legg Mason Bw | Calamos Global vs. Jhancock Diversified Macro | Calamos Global vs. Sentinel Small Pany | Calamos Global vs. Lord Abbett Diversified |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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