Correlation Between Calamos International and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Calamos International 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 International 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 International Growth and Lord Abbett Convertible, you can compare the effects of market volatilities on Calamos International 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 International with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Lord Abbett.
Diversification Opportunities for Calamos International and Lord Abbett
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Lord is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Growth and Lord Abbett Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Convertible and Calamos International 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 International Growth 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 Convertible has no effect on the direction of Calamos International i.e., Calamos International and Lord Abbett go up and down completely randomly.
Pair Corralation between Calamos International and Lord Abbett
Assuming the 90 days horizon Calamos International is expected to generate 2.4 times less return on investment than Lord Abbett. In addition to that, Calamos International is 1.38 times more volatile than Lord Abbett Convertible. It trades about 0.05 of its total potential returns per unit of risk. Lord Abbett Convertible is currently generating about 0.17 per unit of volatility. If you would invest 1,453 in Lord Abbett Convertible on September 14, 2024 and sell it today you would earn a total of 29.00 from holding Lord Abbett Convertible or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos International Growth vs. Lord Abbett Convertible
Performance |
| Timeline |
| Calamos International |
| Lord Abbett Convertible |
Calamos International and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Lord Abbett
The main advantage of trading using opposite Calamos International and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International 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 International vs. Calamos Global Growth | Calamos International vs. Calamos Growth Income | Calamos International vs. Calamos Opportunistic Value | Calamos International vs. Calamos High Income |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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