Correlation Between Voya Intermediate and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate 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 Voya Intermediate and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Lord Abbett High, you can compare the effects of market volatilities on Voya Intermediate 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 Voya Intermediate with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Lord Abbett.
Diversification Opportunities for Voya Intermediate and Lord Abbett
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Lord is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Lord Abbett High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett High and Voya Intermediate 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 Voya Intermediate Bond 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 High has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Lord Abbett go up and down completely randomly.
Pair Corralation between Voya Intermediate and Lord Abbett
Assuming the 90 days horizon Voya Intermediate is expected to generate 2.35 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Voya Intermediate Bond is 1.73 times less risky than Lord Abbett. It trades about 0.04 of its potential returns per unit of risk. Lord Abbett High is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Lord Abbett High on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Lord Abbett High or generate 19.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Lord Abbett High
Performance |
| Timeline |
| Voya Intermediate Bond |
| Lord Abbett High |
Voya Intermediate and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Lord Abbett
The main advantage of trading using opposite Voya Intermediate and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate 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.| Voya Intermediate vs. Tortoise Energy Independence | Voya Intermediate vs. Energy Basic Materials | Voya Intermediate vs. Oil Gas Ultrasector | Voya Intermediate vs. Short Oil Gas |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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