Correlation Between Lord Abbett and James Alpha
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and James Alpha 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 James Alpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Bond and James Alpha Structured, you can compare the effects of market volatilities on Lord Abbett and James Alpha 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 James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and James Alpha.
Diversification Opportunities for Lord Abbett and James Alpha
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and James is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Bond and James Alpha Structured in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha Structured 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 Bond are associated (or correlated) with James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Structured has no effect on the direction of Lord Abbett i.e., Lord Abbett and James Alpha go up and down completely randomly.
Pair Corralation between Lord Abbett and James Alpha
Assuming the 90 days horizon Lord Abbett Bond is expected to under-perform the James Alpha. In addition to that, Lord Abbett is 1.91 times more volatile than James Alpha Structured. It trades about -0.05 of its total potential returns per unit of risk. James Alpha Structured is currently generating about 0.04 per unit of volatility. If you would invest 1,011 in James Alpha Structured on August 30, 2024 and sell it today you would earn a total of 2.00 from holding James Alpha Structured or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Bond vs. James Alpha Structured
Performance |
| Timeline |
| Lord Abbett Bond |
| James Alpha Structured |
Lord Abbett and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and James Alpha
The main advantage of trading using opposite Lord Abbett and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Lord Abbett vs. Champlain Mid Cap | Lord Abbett vs. Eip Growth And | Lord Abbett vs. Kinetics Small Cap | Lord Abbett vs. Small Midcap Dividend Income |
| James Alpha vs. Volumetric Fund Volumetric | James Alpha vs. Qs Large Cap | James Alpha vs. Aam Select Income | James Alpha vs. Western Asset Municipal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |