Correlation Between Cullen Value and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Cullen Value 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 Cullen Value and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Value Fund and Lord Abbett Emerging, you can compare the effects of market volatilities on Cullen Value 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 Cullen Value with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Value and Lord Abbett.
Diversification Opportunities for Cullen Value and Lord Abbett
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cullen and Lord is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Value Fund and Lord Abbett Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Emerging and Cullen Value 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 Cullen Value 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 Emerging has no effect on the direction of Cullen Value i.e., Cullen Value and Lord Abbett go up and down completely randomly.
Pair Corralation between Cullen Value and Lord Abbett
Assuming the 90 days horizon Cullen Value Fund is expected to generate 2.29 times more return on investment than Lord Abbett. However, Cullen Value is 2.29 times more volatile than Lord Abbett Emerging. It trades about 0.3 of its potential returns per unit of risk. Lord Abbett Emerging is currently generating about 0.14 per unit of risk. If you would invest 1,408 in Cullen Value Fund on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Cullen Value Fund or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cullen Value Fund vs. Lord Abbett Emerging
Performance |
| Timeline |
| Cullen Value |
| Lord Abbett Emerging |
Cullen Value and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Value and Lord Abbett
The main advantage of trading using opposite Cullen Value and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Value 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.| Cullen Value vs. Cullen Small Cap | Cullen Value vs. Cullen Small Cap | Cullen Value vs. Cullen Small Cap | Cullen Value vs. Cullen Value Fund |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Floating Rate Fund | Lord Abbett vs. Floating Rate 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |