Correlation Between L Abbett and Calamos High
Can any of the company-specific risk be diversified away by investing in both L Abbett and Calamos High 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 L Abbett and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Fundamental and Calamos High Income, you can compare the effects of market volatilities on L Abbett and Calamos High 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 L Abbett with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Calamos High.
Diversification Opportunities for L Abbett and Calamos High
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LAVVX and Calamos is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Fundamental and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and L 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 L Abbett Fundamental are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of L Abbett i.e., L Abbett and Calamos High go up and down completely randomly.
Pair Corralation between L Abbett and Calamos High
Assuming the 90 days horizon L Abbett Fundamental is expected to generate 3.31 times more return on investment than Calamos High. However, L Abbett is 3.31 times more volatile than Calamos High Income. It trades about 0.09 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.17 per unit of risk. If you would invest 1,119 in L Abbett Fundamental on September 14, 2024 and sell it today you would earn a total of 467.00 from holding L Abbett Fundamental or generate 41.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
L Abbett Fundamental vs. Calamos High Income
Performance |
| Timeline |
| L Abbett Fundamental |
| Calamos High Income |
L Abbett and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Calamos High
The main advantage of trading using opposite L Abbett and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Focused | L Abbett vs. Floating Rate Fund |
| Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Innealta Capital Sector | Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Antetokounmpo Sustainable |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |