Correlation Between Lord Abbett and Cohen
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Cohen 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 Lord Abbett and Cohen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Developing and Cohen And Steers, you can compare the effects of market volatilities on Lord Abbett and Cohen 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 Lord Abbett with a short position of Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Cohen.
Diversification Opportunities for Lord Abbett and Cohen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LORD and Cohen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Developing and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers and Lord Abbett 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 Lord Abbett Developing are associated (or correlated) with Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of Lord Abbett i.e., Lord Abbett and Cohen go up and down completely randomly.
Pair Corralation between Lord Abbett and Cohen
Assuming the 90 days horizon Lord Abbett is expected to generate 1.1 times less return on investment than Cohen. In addition to that, Lord Abbett is 1.32 times more volatile than Cohen And Steers. It trades about 0.03 of its total potential returns per unit of risk. Cohen And Steers is currently generating about 0.04 per unit of volatility. If you would invest 4,073 in Cohen And Steers on November 27, 2024 and sell it today you would earn a total of 879.00 from holding Cohen And Steers or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Developing vs. Cohen And Steers
Performance |
| Timeline |
| Lord Abbett Developing |
| Cohen And Steers |
Lord Abbett and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Cohen
The main advantage of trading using opposite Lord Abbett and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.| Lord Abbett vs. Stone Ridge Diversified | Lord Abbett vs. Diversified Real Asset | Lord Abbett vs. Fidelity Advisor Diversified | Lord Abbett vs. Massmutual Premier Diversified |
| Cohen vs. Emerging Markets Portfolio | Cohen vs. Cohen Steers Realty | Cohen vs. Oppenheimer Developing Markets | Cohen vs. Cohen Steers International |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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