Correlation Between Dunham Real and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Dunham Real 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 Dunham Real and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Real Estate and Lord Abbett Global, you can compare the effects of market volatilities on Dunham Real 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 Dunham Real with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Lord Abbett.
Diversification Opportunities for Dunham Real and Lord Abbett
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Lord is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Lord Abbett Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Global and Dunham Real 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 Dunham Real Estate 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 Global has no effect on the direction of Dunham Real i.e., Dunham Real and Lord Abbett go up and down completely randomly.
Pair Corralation between Dunham Real and Lord Abbett
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.13 times more return on investment than Lord Abbett. However, Dunham Real is 1.13 times more volatile than Lord Abbett Global. It trades about 0.11 of its potential returns per unit of risk. Lord Abbett Global is currently generating about 0.11 per unit of risk. If you would invest 1,452 in Dunham Real Estate on September 2, 2024 and sell it today you would earn a total of 84.00 from holding Dunham Real Estate or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Lord Abbett Global
Performance |
| Timeline |
| Dunham Real Estate |
| Lord Abbett Global |
Dunham Real and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Lord Abbett
The main advantage of trading using opposite Dunham Real and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real 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.| Dunham Real vs. Government Securities Fund | Dunham Real vs. Franklin Adjustable Government | Dunham Real vs. Goldman Sachs Government | Dunham Real vs. Virtus Seix Government |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |