Correlation Between Calamos Market and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Lazard Enhanced 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 Market and Lazard Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Calamos Market and Lazard Enhanced 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 Market with a short position of Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Lazard Enhanced.
Diversification Opportunities for Calamos Market and Lazard Enhanced
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and LAZARD is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo and Calamos Market 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 Market Neutral are associated (or correlated) with Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Calamos Market i.e., Calamos Market and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Calamos Market and Lazard Enhanced
Assuming the 90 days horizon Calamos Market is expected to generate 2.08 times less return on investment than Lazard Enhanced. In addition to that, Calamos Market is 1.43 times more volatile than Lazard Enhanced Opportunities. It trades about 0.07 of its total potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.22 per unit of volatility. If you would invest 784.00 in Lazard Enhanced Opportunities on September 4, 2024 and sell it today you would earn a total of 88.00 from holding Lazard Enhanced Opportunities or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Calamos Market Neutral |
| Lazard Enhanced Oppo |
Calamos Market and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Lazard Enhanced
The main advantage of trading using opposite Calamos Market and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Lazard Enhanced 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 Lazard Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Calamos Market vs. The Arbitrage Fund | Calamos Market vs. The Merger Fund | Calamos Market vs. Gateway Fund Class | Calamos Market vs. Diamond Hill Long Short |
| Lazard Enhanced vs. Lord Abbett High | Lazard Enhanced vs. Ppm High Yield | Lazard Enhanced vs. Artisan High Income | Lazard Enhanced vs. Calvert 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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