Correlation Between Lord Abbett and Calamos International
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Calamos International 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 International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and Calamos International Growth, you can compare the effects of market volatilities on Lord Abbett and Calamos International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Calamos International.
Diversification Opportunities for Lord Abbett and Calamos International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lord and Calamos is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 Diversified are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Lord Abbett i.e., Lord Abbett and Calamos International go up and down completely randomly.
Pair Corralation between Lord Abbett and Calamos International
Assuming the 90 days horizon Lord Abbett is expected to generate 1.6 times less return on investment than Calamos International. But when comparing it to its historical volatility, Lord Abbett Diversified is 2.75 times less risky than Calamos International. It trades about 0.1 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,754 in Calamos International Growth on August 26, 2024 and sell it today you would earn a total of 555.00 from holding Calamos International Growth or generate 31.64% 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 Diversified vs. Calamos International Growth
Performance |
| Timeline |
| Lord Abbett Diversified |
| Calamos International |
Lord Abbett and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Calamos International
The main advantage of trading using opposite Lord Abbett and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Lord Abbett vs. Small Cap Stock | Lord Abbett vs. Qs Growth Fund | Lord Abbett vs. Eic Value Fund | Lord Abbett vs. Volumetric Fund Volumetric |
| Calamos International vs. Ab Value Fund | Calamos International vs. Lord Abbett Diversified | Calamos International vs. Archer Balanced Fund | Calamos International vs. Eic Value 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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