Correlation Between Lord Abbett and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Voya Bond 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 Voya Bond 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 Voya Bond Index, you can compare the effects of market volatilities on Lord Abbett and Voya Bond 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 Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Voya Bond.
Diversification Opportunities for Lord Abbett and Voya Bond
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lord and Voya is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond 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 Convertible are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Lord Abbett i.e., Lord Abbett and Voya Bond go up and down completely randomly.
Pair Corralation between Lord Abbett and Voya Bond
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 1.41 times more return on investment than Voya Bond. However, Lord Abbett is 1.41 times more volatile than Voya Bond Index. It trades about 0.1 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.04 per unit of risk. If you would invest 1,214 in Lord Abbett Convertible on September 2, 2024 and sell it today you would earn a total of 279.00 from holding Lord Abbett Convertible or generate 22.98% 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. Voya Bond Index
Performance |
| Timeline |
| Lord Abbett Convertible |
| Voya Bond Index |
Lord Abbett and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Voya Bond
The main advantage of trading using opposite Lord Abbett and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Voya Bond 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 Voya Bond will offset losses from the drop in Voya Bond's long position.| Lord Abbett vs. Aqr Diversified Arbitrage | Lord Abbett vs. Fidelity Advisor Diversified | Lord Abbett vs. Jhancock Diversified Macro | Lord Abbett vs. Harbor Diversified International |
| Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |