Correlation Between Lord Abbett and Jpmorgan Strategic
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Jpmorgan Strategic 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 Jpmorgan Strategic 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 Jpmorgan Strategic Income, you can compare the effects of market volatilities on Lord Abbett and Jpmorgan Strategic 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 Jpmorgan Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Jpmorgan Strategic.
Diversification Opportunities for Lord Abbett and Jpmorgan Strategic
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Jpmorgan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Jpmorgan Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Strategic Income 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 Jpmorgan Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Strategic Income has no effect on the direction of Lord Abbett i.e., Lord Abbett and Jpmorgan Strategic go up and down completely randomly.
Pair Corralation between Lord Abbett and Jpmorgan Strategic
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 5.07 times more return on investment than Jpmorgan Strategic. However, Lord Abbett is 5.07 times more volatile than Jpmorgan Strategic Income. It trades about 0.23 of its potential returns per unit of risk. Jpmorgan Strategic Income is currently generating about 0.04 per unit of risk. If you would invest 1,443 in Lord Abbett Convertible on September 15, 2024 and sell it today you would earn a total of 39.00 from holding Lord Abbett Convertible or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Jpmorgan Strategic Income
Performance |
| Timeline |
| Lord Abbett Convertible |
| Jpmorgan Strategic Income |
Lord Abbett and Jpmorgan Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Jpmorgan Strategic
The main advantage of trading using opposite Lord Abbett and Jpmorgan Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Jpmorgan Strategic 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 Jpmorgan Strategic will offset losses from the drop in Jpmorgan Strategic's long position.| Lord Abbett vs. Needham Small Cap | Lord Abbett vs. Smallcap Growth Fund | Lord Abbett vs. Kinetics Small Cap | Lord Abbett vs. Pace Smallmedium Value |
| Jpmorgan Strategic vs. Absolute Convertible Arbitrage | Jpmorgan Strategic vs. Allianzgi Convertible Income | Jpmorgan Strategic vs. Lord Abbett Convertible | Jpmorgan Strategic vs. Fidelity Sai 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |