Correlation Between Calamos Vertible and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible 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 Vertible 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 Vertible Fund and Lord Abbett Vertible, you can compare the effects of market volatilities on Calamos Vertible 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 Vertible with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Lord Abbett.
Diversification Opportunities for Calamos Vertible and Lord Abbett
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Lord is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Lord Abbett Vertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Vertible and Calamos Vertible 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 Vertible Fund 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 Vertible has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Lord Abbett go up and down completely randomly.
Pair Corralation between Calamos Vertible and Lord Abbett
Assuming the 90 days horizon Calamos Vertible Fund is expected to under-perform the Lord Abbett. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calamos Vertible Fund is 1.06 times less risky than Lord Abbett. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Lord Abbett Vertible is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,499 in Lord Abbett Vertible on November 2, 2024 and sell it today you would earn a total of 15.00 from holding Lord Abbett Vertible or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Lord Abbett Vertible
Performance |
| Timeline |
| Calamos Vertible |
| Lord Abbett Vertible |
Calamos Vertible and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Lord Abbett
The main advantage of trading using opposite Calamos Vertible and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible 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 Vertible vs. Fidelity Advisor Technology | Calamos Vertible vs. Blackrock Science Technology | Calamos Vertible vs. Red Oak Technology | Calamos Vertible vs. Invesco Technology Fund |
| Lord Abbett vs. Dws Equity Sector | Lord Abbett vs. Smallcap World Fund | Lord Abbett vs. Enhanced Fixed Income | Lord Abbett vs. The Growth Equity |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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