Correlation Between Lord Abbett and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Harding Loevner 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 Harding Loevner 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 Harding Loevner International, you can compare the effects of market volatilities on Lord Abbett and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Harding Loevner.
Diversification Opportunities for Lord Abbett and Harding Loevner
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and Harding is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Harding Loevner International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inte 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Inte has no effect on the direction of Lord Abbett i.e., Lord Abbett and Harding Loevner go up and down completely randomly.
Pair Corralation between Lord Abbett and Harding Loevner
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 0.7 times more return on investment than Harding Loevner. However, Lord Abbett Convertible is 1.42 times less risky than Harding Loevner. It trades about 0.1 of its potential returns per unit of risk. Harding Loevner International is currently generating about 0.01 per unit of risk. If you would invest 1,256 in Lord Abbett Convertible on September 3, 2024 and sell it today you would earn a total of 231.00 from holding Lord Abbett Convertible or generate 18.39% 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. Harding Loevner International
Performance |
| Timeline |
| Lord Abbett Convertible |
| Harding Loevner Inte |
Lord Abbett and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Harding Loevner
The main advantage of trading using opposite Lord Abbett and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Lord Abbett vs. Franklin Vertible Securities | Lord Abbett vs. Franklin Vertible Securities | Lord Abbett vs. Allianzgi Vertible Fund |
| Harding Loevner vs. Oppenheimer Intl Small | Harding Loevner vs. Oppenheimer Intl Small | Harding Loevner vs. HUMANA INC | Harding Loevner vs. Aquagold International |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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