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 Health 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
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lord and Calamos is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health 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 Health 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
Assuming the 90 days horizon Lord Abbett is expected to generate 2.59 times less return on investment than Calamos Convertible. In addition to that, Lord Abbett is 2.08 times more volatile than Calamos Vertible Fund. It trades about 0.07 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.38 per unit of volatility. If you would invest 2,159 in Calamos Vertible Fund on August 29, 2024 and sell it today you would earn a total of 111.00 from holding Calamos Vertible Fund or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Health vs. Calamos Vertible Fund
Performance |
| Timeline |
| Lord Abbett Health |
| Calamos Convertible |
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. Fidelity Advisor Technology | Lord Abbett vs. Fidelity Advisor Biotechnology | Lord Abbett vs. Fidelity Advisor Financial | Lord Abbett vs. Fidelity Advisor Utilities |
| Calamos Convertible vs. Live Oak Health | Calamos Convertible vs. Invesco Global Health | Calamos Convertible vs. Eventide Healthcare Life | Calamos Convertible vs. Lord Abbett Health |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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