Correlation Between L Abbett and Aig Government
Can any of the company-specific risk be diversified away by investing in both L Abbett and Aig Government 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 L Abbett and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Fundamental and Aig Government Money, you can compare the effects of market volatilities on L Abbett and Aig Government 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 L Abbett with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Aig Government.
Diversification Opportunities for L Abbett and Aig Government
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between LAVVX and Aig is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Fundamental and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money and L 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 L Abbett Fundamental are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of L Abbett i.e., L Abbett and Aig Government go up and down completely randomly.
Pair Corralation between L Abbett and Aig Government
Assuming the 90 days horizon L Abbett Fundamental is expected to generate 3.97 times more return on investment than Aig Government. However, L Abbett is 3.97 times more volatile than Aig Government Money. It trades about 0.08 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.02 per unit of risk. If you would invest 1,145 in L Abbett Fundamental on October 9, 2024 and sell it today you would earn a total of 402.00 from holding L Abbett Fundamental or generate 35.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Fundamental vs. Aig Government Money
Performance |
| Timeline |
| L Abbett Fundamental |
| Aig Government Money |
L Abbett and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Aig Government
The main advantage of trading using opposite L Abbett and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| L Abbett vs. Rbc Global Equity | L Abbett vs. Rbb Fund Trust | L Abbett vs. Old Westbury Large | L Abbett vs. Touchstone Large Cap |
| Aig Government vs. Alphacentric Lifesci Healthcare | Aig Government vs. Baillie Gifford Health | Aig Government vs. Eventide Healthcare Life | Aig Government vs. The Hartford Healthcare |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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