Correlation Between Lord Abbett and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Amg Managers 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 Lord Abbett and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Emerging and Amg Managers Centersquare, you can compare the effects of market volatilities on Lord Abbett and Amg Managers 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 Lord Abbett with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Amg Managers.
Diversification Opportunities for Lord Abbett and Amg Managers
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Amg is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Emerging and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Lord Abbett 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 Lord Abbett Emerging are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Lord Abbett i.e., Lord Abbett and Amg Managers go up and down completely randomly.
Pair Corralation between Lord Abbett and Amg Managers
Assuming the 90 days horizon Lord Abbett Emerging is expected to generate 0.82 times more return on investment than Amg Managers. However, Lord Abbett Emerging is 1.22 times less risky than Amg Managers. It trades about 0.08 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.01 per unit of risk. If you would invest 1,569 in Lord Abbett Emerging on November 4, 2024 and sell it today you would earn a total of 25.00 from holding Lord Abbett Emerging or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Emerging vs. Amg Managers Centersquare
Performance |
| Timeline |
| Lord Abbett Emerging |
| Amg Managers Centersquare |
Lord Abbett and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Amg Managers
The main advantage of trading using opposite Lord Abbett and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Lord Abbett vs. Cref Inflation Linked Bond | Lord Abbett vs. Tiaa Cref Inflation Linked Bond | Lord Abbett vs. Asg Managed Futures | Lord Abbett vs. Ab Bond Inflation |
| Amg Managers vs. Transamerica Capital Growth | Amg Managers vs. Praxis Genesis Growth | Amg Managers vs. Qs Defensive Growth | Amg Managers vs. Upright Growth Income |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |