Correlation Between Lord Abbett and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Bny Mellon 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 Bny Mellon 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 Bny Mellon National, you can compare the effects of market volatilities on Lord Abbett and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Bny Mellon.
Diversification Opportunities for Lord Abbett and Bny Mellon
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and Bny is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Bny Mellon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon National 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon National has no effect on the direction of Lord Abbett i.e., Lord Abbett and Bny Mellon go up and down completely randomly.
Pair Corralation between Lord Abbett and Bny Mellon
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 2.22 times more return on investment than Bny Mellon. However, Lord Abbett is 2.22 times more volatile than Bny Mellon National. It trades about 0.61 of its potential returns per unit of risk. Bny Mellon National is currently generating about 0.2 per unit of risk. If you would invest 1,382 in Lord Abbett Convertible on September 4, 2024 and sell it today you would earn a total of 105.00 from holding Lord Abbett Convertible or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Bny Mellon National
Performance |
| Timeline |
| Lord Abbett Convertible |
| Bny Mellon National |
Lord Abbett and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Bny Mellon
The main advantage of trading using opposite Lord Abbett and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| Bny Mellon vs. Artisan Emerging Markets | Bny Mellon vs. Morgan Stanley Emerging | Bny Mellon vs. Shelton Emerging Markets | Bny Mellon vs. Jpmorgan Emerging Markets |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |