Correlation Between Lord Abbett and Aim Taxexempt
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Aim Taxexempt 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 Aim Taxexempt 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 Aim Taxexempt Funds, you can compare the effects of market volatilities on Lord Abbett and Aim Taxexempt 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 Aim Taxexempt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Aim Taxexempt.
Diversification Opportunities for Lord Abbett and Aim Taxexempt
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lord and Aim is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Aim Taxexempt Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Taxexempt Funds 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 Aim Taxexempt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Taxexempt Funds has no effect on the direction of Lord Abbett i.e., Lord Abbett and Aim Taxexempt go up and down completely randomly.
Pair Corralation between Lord Abbett and Aim Taxexempt
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 2.95 times more return on investment than Aim Taxexempt. However, Lord Abbett is 2.95 times more volatile than Aim Taxexempt Funds. It trades about 0.2 of its potential returns per unit of risk. Aim Taxexempt Funds is currently generating about 0.15 per unit of risk. If you would invest 1,315 in Lord Abbett Convertible on September 2, 2024 and sell it today you would earn a total of 178.00 from holding Lord Abbett Convertible or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Aim Taxexempt Funds
Performance |
| Timeline |
| Lord Abbett Convertible |
| Aim Taxexempt Funds |
Lord Abbett and Aim Taxexempt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Aim Taxexempt
The main advantage of trading using opposite Lord Abbett and Aim Taxexempt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Aim Taxexempt 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 Aim Taxexempt will offset losses from the drop in Aim Taxexempt'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 |
| Aim Taxexempt vs. Fidelity Sai Convertible | Aim Taxexempt vs. Absolute Convertible Arbitrage | Aim Taxexempt vs. Virtus Convertible | Aim Taxexempt vs. Lord Abbett Convertible |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |