Correlation Between Lord Abbett and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calamos Convertible 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 Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Vertible and Calamos Vertible Fund, you can compare the effects of market volatilities on Lord Abbett and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calamos Convertible.
Diversification Opportunities for Lord Abbett and Calamos Convertible
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Calamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Vertible and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Vertible are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calamos Convertible go up and down completely randomly.
Pair Corralation between Lord Abbett and Calamos Convertible
If you would invest 1,379 in Lord Abbett Vertible on August 25, 2024 and sell it today you would earn a total of 89.00 from holding Lord Abbett Vertible or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lord Abbett Vertible vs. Calamos Vertible Fund
Performance |
| Timeline |
| Lord Abbett Vertible |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Calamos Convertible |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Lord Abbett and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calamos Convertible
The main advantage of trading using opposite Lord Abbett and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calamos Convertible 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.| Lord Abbett vs. American Funds Conservative | Lord Abbett vs. Fidelity Advisor Diversified | Lord Abbett vs. Pgim Conservative Retirement | Lord Abbett vs. Calvert Conservative Allocation |
| Calamos Convertible vs. Calvert High Yield | Calamos Convertible vs. Alliancebernstein Global High | Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. Needham Aggressive Growth |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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