Correlation Between Amg Managers and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Fairpointe and Lord Abbett Convertible, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Lord Abbett.
Diversification Opportunities for Amg Managers and Lord Abbett
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Lord is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Fairpointe and Lord Abbett Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Convertible and Amg Managers 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 Amg Managers Fairpointe 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 Convertible has no effect on the direction of Amg Managers i.e., Amg Managers and Lord Abbett go up and down completely randomly.
Pair Corralation between Amg Managers and Lord Abbett
Assuming the 90 days horizon Amg Managers Fairpointe is expected to generate 1.6 times more return on investment than Lord Abbett. However, Amg Managers is 1.6 times more volatile than Lord Abbett Convertible. It trades about 0.12 of its potential returns per unit of risk. Lord Abbett Convertible is currently generating about 0.16 per unit of risk. If you would invest 1,985 in Amg Managers Fairpointe on September 14, 2024 and sell it today you would earn a total of 593.00 from holding Amg Managers Fairpointe or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Fairpointe vs. Lord Abbett Convertible
Performance |
| Timeline |
| Amg Managers Fairpointe |
| Lord Abbett Convertible |
Amg Managers and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Lord Abbett
The main advantage of trading using opposite Amg Managers and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Lord Abbett Convertible | Amg Managers vs. Rationalpier 88 Convertible | Amg Managers vs. Putnam Convertible Incm Gwth | Amg Managers vs. Advent Claymore Convertible |
| Lord Abbett vs. Towpath Technology | Lord Abbett vs. Columbia Global Technology | Lord Abbett vs. Pgim Jennison Technology | Lord Abbett vs. Dreyfus Technology Growth |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |