Correlation Between Glg Intl and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Glg Intl 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 Glg Intl and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Lord Abbett Focused, you can compare the effects of market volatilities on Glg Intl 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 Glg Intl with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Lord Abbett.
Diversification Opportunities for Glg Intl and Lord Abbett
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glg and Lord is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Lord Abbett Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Focused and Glg Intl 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 Glg Intl Small 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 Focused has no effect on the direction of Glg Intl i.e., Glg Intl and Lord Abbett go up and down completely randomly.
Pair Corralation between Glg Intl and Lord Abbett
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.88 times more return on investment than Lord Abbett. However, Glg Intl Small is 1.13 times less risky than Lord Abbett. It trades about 0.09 of its potential returns per unit of risk. Lord Abbett Focused is currently generating about 0.03 per unit of risk. If you would invest 5,272 in Glg Intl Small on September 25, 2024 and sell it today you would earn a total of 3,213 from holding Glg Intl Small or generate 60.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Lord Abbett Focused
Performance |
| Timeline |
| Glg Intl Small |
| Lord Abbett Focused |
Glg Intl and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Lord Abbett
The main advantage of trading using opposite Glg Intl and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl 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.| Glg Intl vs. 1919 Financial Services | Glg Intl vs. Goldman Sachs Financial | Glg Intl vs. Gabelli Global Financial | Glg Intl vs. Prudential Jennison Financial |
| Lord Abbett vs. Alliancebernstein Bond | Lord Abbett vs. Ishares Municipal Bond | Lord Abbett vs. Ft 7927 Corporate | Lord Abbett vs. Multisector Bond Sma |
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 CEOs Directory module to screen CEOs from public companies around the world.
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