Correlation Between Lord Abbett and Calamos Vertible
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calamos Vertible 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 Vertible 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 Vertible 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 Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calamos Vertible.
Diversification Opportunities for Lord Abbett and Calamos Vertible
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Calamos is 0.91. 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 Vertible 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 Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Vertible has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calamos Vertible go up and down completely randomly.
Pair Corralation between Lord Abbett and Calamos Vertible
Assuming the 90 days horizon Lord Abbett Vertible is expected to generate 1.06 times more return on investment than Calamos Vertible. However, Lord Abbett is 1.06 times more volatile than Calamos Vertible Fund. It trades about 0.04 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about -0.05 per unit of risk. 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 |
Lord Abbett Vertible vs. Calamos Vertible Fund
Performance |
| Timeline |
| Lord Abbett Vertible |
| Calamos Vertible |
Lord Abbett and Calamos Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calamos Vertible
The main advantage of trading using opposite Lord Abbett and Calamos Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calamos Vertible 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 Vertible will offset losses from the drop in Calamos Vertible's long position.| Lord Abbett vs. Dws Equity Sector | Lord Abbett vs. Smallcap World Fund | Lord Abbett vs. Enhanced Fixed Income | Lord Abbett vs. The Growth Equity |
| Calamos Vertible vs. Fidelity Advisor Technology | Calamos Vertible vs. Blackrock Science Technology | Calamos Vertible vs. Red Oak Technology | Calamos Vertible vs. Invesco Technology Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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