Correlation Between Lord Abbett and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calamos Evolving 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 Evolving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inflation and Calamos Evolving World, you can compare the effects of market volatilities on Lord Abbett and Calamos Evolving 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 Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calamos Evolving.
Diversification Opportunities for Lord Abbett and Calamos Evolving
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Calamos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inflation and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World 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 Inflation are associated (or correlated) with Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calamos Evolving go up and down completely randomly.
Pair Corralation between Lord Abbett and Calamos Evolving
Assuming the 90 days horizon Lord Abbett is expected to generate 2.67 times less return on investment than Calamos Evolving. But when comparing it to its historical volatility, Lord Abbett Inflation is 4.5 times less risky than Calamos Evolving. It trades about 0.08 of its potential returns per unit of risk. Calamos Evolving World is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,596 in Calamos Evolving World on August 30, 2024 and sell it today you would earn a total of 353.00 from holding Calamos Evolving World or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Inflation vs. Calamos Evolving World
Performance |
| Timeline |
| Lord Abbett Inflation |
| Calamos Evolving World |
Lord Abbett and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calamos Evolving
The main advantage of trading using opposite Lord Abbett and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving's long position.| Lord Abbett vs. HUMANA INC | Lord Abbett vs. Aquagold International | Lord Abbett vs. Barloworld Ltd ADR | Lord Abbett vs. Morningstar Unconstrained Allocation |
| Calamos Evolving vs. American Funds Inflation | Calamos Evolving vs. Lord Abbett Inflation | Calamos Evolving vs. Aqr Managed Futures | Calamos Evolving vs. Oklahoma College Savings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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