Correlation Between Lord Abbett and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calamos Dynamic 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 Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Growth and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Lord Abbett and Calamos Dynamic 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 Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calamos Dynamic.
Diversification Opportunities for Lord Abbett and Calamos Dynamic
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lord and Calamos is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Growth and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv 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 Growth are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Lord Abbett and Calamos Dynamic
Assuming the 90 days horizon Lord Abbett Growth is expected to generate 1.35 times more return on investment than Calamos Dynamic. However, Lord Abbett is 1.35 times more volatile than Calamos Dynamic Convertible. It trades about 0.34 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.05 per unit of risk. If you would invest 2,999 in Lord Abbett Growth on August 30, 2024 and sell it today you would earn a total of 341.00 from holding Lord Abbett Growth or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Growth vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Lord Abbett Growth |
| Calamos Dynamic Conv |
Lord Abbett and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calamos Dynamic
The main advantage of trading using opposite Lord Abbett and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calamos Dynamic 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 Dynamic will offset losses from the drop in Calamos Dynamic's long position.| Lord Abbett vs. Guinness Atkinson Alternative | Lord Abbett vs. Hennessy Bp Energy | Lord Abbett vs. Clearbridge Energy Mlp | Lord Abbett vs. Gamco Natural Resources |
| Calamos Dynamic vs. Gabelli Global Small | Calamos Dynamic vs. MFS Investment Grade | Calamos Dynamic vs. Eaton Vance National | Calamos Dynamic vs. GAMCO Natural Resources |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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