Correlation Between Lord Abbett and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Stone Harbor 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 Stone Harbor 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 Stone Harbor Emerging, you can compare the effects of market volatilities on Lord Abbett and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Stone Harbor.
Diversification Opportunities for Lord Abbett and Stone Harbor
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Stone is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Bond and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Emerging has no effect on the direction of Lord Abbett i.e., Lord Abbett and Stone Harbor go up and down completely randomly.
Pair Corralation between Lord Abbett and Stone Harbor
Assuming the 90 days horizon Lord Abbett is expected to generate 1.21 times less return on investment than Stone Harbor. But when comparing it to its historical volatility, Lord Abbett Bond is 1.34 times less risky than Stone Harbor. It trades about 0.17 of its potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Stone Harbor Emerging on September 3, 2024 and sell it today you would earn a total of 40.00 from holding Stone Harbor Emerging or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Bond vs. Stone Harbor Emerging
Performance |
| Timeline |
| Lord Abbett Bond |
| Stone Harbor Emerging |
Lord Abbett and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Stone Harbor
The main advantage of trading using opposite Lord Abbett and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Lord Abbett vs. Gmo High Yield | Lord Abbett vs. Calvert High Yield | Lord Abbett vs. Siit High Yield | Lord Abbett vs. Artisan High Income |
| Stone Harbor vs. Fidelity New Markets | Stone Harbor vs. Fidelity New Markets | Stone Harbor vs. Fidelity New Markets | Stone Harbor vs. Fidelity New Markets |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |