Correlation Between Lord Abbett and Nationwide International
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Nationwide International 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 Nationwide International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Convertible and Nationwide International Index, you can compare the effects of market volatilities on Lord Abbett and Nationwide International 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 Nationwide International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Nationwide International.
Diversification Opportunities for Lord Abbett and Nationwide International
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and Nationwide is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Nationwide International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide International 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 Convertible are associated (or correlated) with Nationwide International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide International has no effect on the direction of Lord Abbett i.e., Lord Abbett and Nationwide International go up and down completely randomly.
Pair Corralation between Lord Abbett and Nationwide International
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 0.72 times more return on investment than Nationwide International. However, Lord Abbett Convertible is 1.38 times less risky than Nationwide International. It trades about 0.33 of its potential returns per unit of risk. Nationwide International Index is currently generating about -0.25 per unit of risk. If you would invest 1,384 in Lord Abbett Convertible on August 30, 2024 and sell it today you would earn a total of 106.00 from holding Lord Abbett Convertible or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Nationwide International Index
Performance |
| Timeline |
| Lord Abbett Convertible |
| Nationwide International |
Lord Abbett and Nationwide International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Nationwide International
The main advantage of trading using opposite Lord Abbett and Nationwide International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Nationwide International 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 Nationwide International will offset losses from the drop in Nationwide International's long position.| Lord Abbett vs. Franklin Vertible Securities | Lord Abbett vs. Franklin Vertible Securities | Lord Abbett vs. Allianzgi Vertible Fund | Lord Abbett vs. Allianzgi Vertible Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |