Correlation Between Lord Abbett and Frost Low
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Frost Low 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 Frost Low into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Frost Low Duration, you can compare the effects of market volatilities on Lord Abbett and Frost Low 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 Frost Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Frost Low.
Diversification Opportunities for Lord Abbett and Frost Low
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Frost is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Frost Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Low Duration 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 Short are associated (or correlated) with Frost Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Low Duration has no effect on the direction of Lord Abbett i.e., Lord Abbett and Frost Low go up and down completely randomly.
Pair Corralation between Lord Abbett and Frost Low
Assuming the 90 days horizon Lord Abbett Short is expected to generate 1.31 times more return on investment than Frost Low. However, Lord Abbett is 1.31 times more volatile than Frost Low Duration. It trades about 0.13 of its potential returns per unit of risk. Frost Low Duration is currently generating about 0.03 per unit of risk. If you would invest 385.00 in Lord Abbett Short on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Lord Abbett Short or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Frost Low Duration
Performance |
| Timeline |
| Lord Abbett Short |
| Frost Low Duration |
Lord Abbett and Frost Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Frost Low
The main advantage of trading using opposite Lord Abbett and Frost Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Frost Low 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 Frost Low will offset losses from the drop in Frost Low's long position.| Lord Abbett vs. Small Pany Growth | Lord Abbett vs. Rational Defensive Growth | Lord Abbett vs. L Abbett Growth | Lord Abbett vs. Praxis Growth Index |
| Frost Low vs. Frost Growth Equity | Frost Low vs. Frost Total Return | Frost Low vs. Frost Credit Fund | Frost Low vs. Fidelity Advisor Freedom |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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