Correlation Between Quantitative and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Quantitative 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 Quantitative and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative U S and Lord Abbett Growth, you can compare the effects of market volatilities on Quantitative 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 Quantitative with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative and Lord Abbett.
Diversification Opportunities for Quantitative and Lord Abbett
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Quantitative and Lord is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative U S and Lord Abbett Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Growth and Quantitative 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 Quantitative U S 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 Growth has no effect on the direction of Quantitative i.e., Quantitative and Lord Abbett go up and down completely randomly.
Pair Corralation between Quantitative and Lord Abbett
Assuming the 90 days horizon Quantitative is expected to generate 2.13 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Quantitative U S is 1.7 times less risky than Lord Abbett. It trades about 0.27 of its potential returns per unit of risk. Lord Abbett Growth is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,272 in Lord Abbett Growth on August 31, 2024 and sell it today you would earn a total of 260.00 from holding Lord Abbett Growth or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative U S vs. Lord Abbett Growth
Performance |
| Timeline |
| Quantitative U S |
| Lord Abbett Growth |
Quantitative and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative and Lord Abbett
The main advantage of trading using opposite Quantitative and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative 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.| Quantitative vs. Siit High Yield | Quantitative vs. Multi Manager High Yield | Quantitative vs. Prudential Short Duration | Quantitative vs. Dunham High Yield |
| Lord Abbett vs. Calvert Conservative Allocation | Lord Abbett vs. American Funds Conservative | Lord Abbett vs. Evaluator Conservative Rms | Lord Abbett vs. Aqr Diversified Arbitrage |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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