Correlation Between Lord Abbett and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Nasdaq-100 Index 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 Nasdaq-100 Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Vertible and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Lord Abbett and Nasdaq-100 Index 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 Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Nasdaq-100 Index.
Diversification Opportunities for Lord Abbett and Nasdaq-100 Index
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lord and Nasdaq-100 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Vertible and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index 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 Vertible are associated (or correlated) with Nasdaq-100 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Lord Abbett i.e., Lord Abbett and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Lord Abbett and Nasdaq-100 Index
Assuming the 90 days horizon Lord Abbett Vertible is expected to generate 0.6 times more return on investment than Nasdaq-100 Index. However, Lord Abbett Vertible is 1.65 times less risky than Nasdaq-100 Index. It trades about 0.21 of its potential returns per unit of risk. Nasdaq 100 Index Fund is currently generating about 0.02 per unit of risk. If you would invest 1,465 in Lord Abbett Vertible on October 24, 2024 and sell it today you would earn a total of 40.00 from holding Lord Abbett Vertible or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Vertible vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Lord Abbett Vertible |
| Nasdaq 100 Index |
Lord Abbett and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Nasdaq-100 Index
The main advantage of trading using opposite Lord Abbett and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Nasdaq-100 Index 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 Nasdaq-100 Index will offset losses from the drop in Nasdaq-100 Index's long position.| Lord Abbett vs. Center St Mlp | Lord Abbett vs. Fxybjx | Lord Abbett vs. Abr 7525 Volatility | Lord Abbett vs. Red Oak Technology |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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