Correlation Between Intel and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Lord Abbett Core, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Lord Abbett.
Diversification Opportunities for Intel and Lord Abbett
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Lord is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Lord Abbett Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Core and Intel 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 Intel 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 Core has no effect on the direction of Intel i.e., Intel and Lord Abbett go up and down completely randomly.
Pair Corralation between Intel and Lord Abbett
Given the investment horizon of 90 days Intel is expected to generate 1.39 times less return on investment than Lord Abbett. In addition to that, Intel is 4.87 times more volatile than Lord Abbett Core. It trades about 0.01 of its total potential returns per unit of risk. Lord Abbett Core is currently generating about 0.04 per unit of volatility. If you would invest 1,173 in Lord Abbett Core on September 4, 2024 and sell it today you would earn a total of 123.00 from holding Lord Abbett Core or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Lord Abbett Core
Performance |
| Timeline |
| Intel |
| Lord Abbett Core |
Intel and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Lord Abbett
The main advantage of trading using opposite Intel and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NXP Semiconductors NV | Intel vs. Analog Devices | Intel vs. Monolithic Power Systems | Intel vs. ON Semiconductor |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |