Correlation Between Lord Abbett and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Mainstay High 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 Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Government and Mainstay High Yield, you can compare the effects of market volatilities on Lord Abbett and Mainstay High 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 Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Mainstay High.
Diversification Opportunities for Lord Abbett and Mainstay High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Government and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 Government are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Lord Abbett i.e., Lord Abbett and Mainstay High go up and down completely randomly.
Pair Corralation between Lord Abbett and Mainstay High
If you would invest 474.00 in Mainstay High Yield on September 15, 2024 and sell it today you would earn a total of 51.00 from holding Mainstay High Yield or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 42.59% |
| Values | Daily Returns |
Lord Abbett Government vs. Mainstay High Yield
Performance |
| Timeline |
| Lord Abbett Government |
| Mainstay High Yield |
Lord Abbett and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Mainstay High
The main advantage of trading using opposite Lord Abbett and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Mainstay High 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Lord Abbett vs. Neuberger Berman High | Lord Abbett vs. Aquagold International | Lord Abbett vs. Morningstar Unconstrained Allocation | Lord Abbett vs. Thrivent High Yield |
| Mainstay High vs. Franklin Adjustable Government | Mainstay High vs. Goldman Sachs Government | Mainstay High vs. Sit Government Securities | Mainstay High vs. Lord Abbett Government |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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