Correlation Between Jhancock Short and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Jhancock 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 Jhancock 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 Jhancock Short Duration and Lord Abbett Inflation, you can compare the effects of market volatilities on Jhancock 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 Jhancock Short with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Lord Abbett.
Diversification Opportunities for Jhancock Short and Lord Abbett
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and LORD is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Lord Abbett Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inflation and Jhancock 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 Jhancock 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 Inflation has no effect on the direction of Jhancock Short i.e., Jhancock Short and Lord Abbett go up and down completely randomly.
Pair Corralation between Jhancock Short and Lord Abbett
Assuming the 90 days horizon Jhancock Short Duration is expected to generate 0.7 times more return on investment than Lord Abbett. However, Jhancock Short Duration is 1.42 times less risky than Lord Abbett. It trades about -0.08 of its potential returns per unit of risk. Lord Abbett Inflation is currently generating about -0.08 per unit of risk. If you would invest 940.00 in Jhancock Short Duration on August 30, 2024 and sell it today you would lose (4.00) from holding Jhancock Short Duration or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Jhancock Short Duration vs. Lord Abbett Inflation
Performance |
| Timeline |
| Jhancock Short Duration |
| Lord Abbett Inflation |
Jhancock Short and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Lord Abbett
The main advantage of trading using opposite Jhancock Short and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock 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.| Jhancock Short vs. Global Technology Portfolio | Jhancock Short vs. Dreyfus Technology Growth | Jhancock Short vs. Blackrock Science Technology | Jhancock Short vs. Invesco Technology Fund |
| Lord Abbett vs. Us Government Securities | Lord Abbett vs. Franklin Adjustable Government | Lord Abbett vs. Aig Government Money | Lord Abbett vs. Prudential Government Income |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |