Correlation Between At Mid and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both At Mid 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 At Mid and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between At Mid Cap and Lord Abbett Convertible, you can compare the effects of market volatilities on At Mid 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 At Mid with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of At Mid and Lord Abbett.
Diversification Opportunities for At Mid and Lord Abbett
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AWMIX and Lord is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding At Mid Cap 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 At Mid 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 At Mid Cap 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 At Mid i.e., At Mid and Lord Abbett go up and down completely randomly.
Pair Corralation between At Mid and Lord Abbett
Assuming the 90 days horizon At Mid Cap is expected to generate 1.79 times more return on investment than Lord Abbett. However, At Mid is 1.79 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 0.19 per unit of risk. If you would invest 1,691 in At Mid Cap on September 1, 2024 and sell it today you would earn a total of 537.00 from holding At Mid Cap or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
At Mid Cap vs. Lord Abbett Convertible
Performance |
| Timeline |
| At Mid Cap |
| Lord Abbett Convertible |
At Mid and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with At Mid and Lord Abbett
The main advantage of trading using opposite At Mid and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if At Mid 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.| At Mid vs. Pace International Emerging | At Mid vs. Black Oak Emerging | At Mid vs. Transamerica Emerging Markets | At Mid vs. Goldman Sachs Emerging |
| Lord Abbett vs. Ab Bond Inflation | Lord Abbett vs. Nuveen Arizona Municipal | Lord Abbett vs. Federated Ohio Municipal | Lord Abbett vs. Oklahoma Municipal 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance |