Correlation Between Astor Long/short and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Astor Long/short 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 Astor Long/short and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Lord Abbett Growth, you can compare the effects of market volatilities on Astor Long/short 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 Astor Long/short with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Lord Abbett.
Diversification Opportunities for Astor Long/short and Lord Abbett
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Lord is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Lord Abbett Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Growth and Astor Long/short 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 Astor 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 Growth has no effect on the direction of Astor Long/short i.e., Astor Long/short and Lord Abbett go up and down completely randomly.
Pair Corralation between Astor Long/short and Lord Abbett
Assuming the 90 days horizon Astor Long/short is expected to generate 3.53 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Astor Longshort Fund is 3.8 times less risky than Lord Abbett. It trades about 0.46 of its potential returns per unit of risk. Lord Abbett Growth is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 2,561 in Lord Abbett Growth on September 1, 2024 and sell it today you would earn a total of 356.00 from holding Lord Abbett Growth or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astor Longshort Fund vs. Lord Abbett Growth
Performance |
| Timeline |
| Astor Long/short |
| Lord Abbett Growth |
Astor Long/short and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Lord Abbett
The main advantage of trading using opposite Astor Long/short and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short 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.| Astor Long/short vs. Fidelity Real Estate | Astor Long/short vs. Prudential Real Estate | Astor Long/short vs. Deutsche Real Estate | Astor Long/short vs. Virtus Real Estate |
| Lord Abbett vs. Quantitative Longshort Equity | Lord Abbett vs. Goldman Sachs Short Term | Lord Abbett vs. Astor Longshort Fund | Lord Abbett vs. Jhancock Short Duration |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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