Correlation Between Prudential Short and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Prudential Short 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 Prudential Short and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Short Duration and Lord Abbett Health, you can compare the effects of market volatilities on Prudential Short 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 Prudential Short with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Short and Lord Abbett.
Diversification Opportunities for Prudential Short and Lord Abbett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prudential and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Short Duration and Lord Abbett Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Health and Prudential Short 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 Prudential Short Duration 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 Health has no effect on the direction of Prudential Short i.e., Prudential Short and Lord Abbett go up and down completely randomly.
Pair Corralation between Prudential Short and Lord Abbett
Assuming the 90 days horizon Prudential Short Duration is expected to generate 0.24 times more return on investment than Lord Abbett. However, Prudential Short Duration is 4.12 times less risky than Lord Abbett. It trades about 0.15 of its potential returns per unit of risk. Lord Abbett Health is currently generating about 0.03 per unit of risk. If you would invest 712.00 in Prudential Short Duration on September 15, 2024 and sell it today you would earn a total of 134.00 from holding Prudential Short Duration or generate 18.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Short Duration vs. Lord Abbett Health
Performance |
| Timeline |
| Prudential Short Duration |
| Lord Abbett Health |
Prudential Short and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Short and Lord Abbett
The main advantage of trading using opposite Prudential Short and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Short 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.| Prudential Short vs. Putnam Convertible Incm Gwth | Prudential Short vs. Fidelity Sai Convertible | Prudential Short vs. Absolute Convertible Arbitrage | Prudential Short vs. Advent Claymore Convertible |
| Lord Abbett vs. Lord Abbett Short | Lord Abbett vs. Prudential Short Duration | Lord Abbett vs. Boston Partners Longshort | Lord Abbett vs. Siit Ultra Short |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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