Correlation Between Calamos Longshort and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Calamos Longshort and Lord Abbett 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 Calamos Longshort and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Longshort Fund and Lord Abbett Short, you can compare the effects of market volatilities on Calamos Longshort and Lord Abbett 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 Calamos Longshort with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Longshort and Lord Abbett.
Diversification Opportunities for Calamos Longshort and Lord Abbett
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Lord is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Longshort Fund and Lord Abbett Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Short and Calamos Longshort 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 Calamos Longshort Fund are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Short has no effect on the direction of Calamos Longshort i.e., Calamos Longshort and Lord Abbett go up and down completely randomly.
Pair Corralation between Calamos Longshort and Lord Abbett
Assuming the 90 days horizon Calamos Longshort Fund is expected to generate 3.19 times more return on investment than Lord Abbett. However, Calamos Longshort is 3.19 times more volatile than Lord Abbett Short. It trades about 0.25 of its potential returns per unit of risk. Lord Abbett Short is currently generating about 0.37 per unit of risk. If you would invest 985.00 in Calamos Longshort Fund on April 24, 2025 and sell it today you would earn a total of 111.00 from holding Calamos Longshort Fund or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Longshort Fund vs. Lord Abbett Short
Performance |
| Timeline |
| Calamos Longshort |
| Lord Abbett Short |
Calamos Longshort and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Longshort and Lord Abbett
The main advantage of trading using opposite Calamos Longshort and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Longshort position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Calamos Longshort vs. Tekla Healthcare Investors | Calamos Longshort vs. Fidelity Advisor Health | Calamos Longshort vs. Allianzgi Health Sciences | Calamos Longshort vs. Deutsche Health And |
| Lord Abbett vs. Ab Bond Inflation | Lord Abbett vs. Bts Tactical Fixed | Lord Abbett vs. Enhanced Fixed Income | Lord Abbett vs. Ultra Short Term Fixed |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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