Correlation Between Lord Abbett and Siit Long
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Siit Long 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 Siit Long 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 Siit Long Duration, you can compare the effects of market volatilities on Lord Abbett and Siit Long 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 Siit Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Siit Long.
Diversification Opportunities for Lord Abbett and Siit Long
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lord and Siit is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Siit Long Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Long Duration 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 Siit Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Long Duration has no effect on the direction of Lord Abbett i.e., Lord Abbett and Siit Long go up and down completely randomly.
Pair Corralation between Lord Abbett and Siit Long
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 0.75 times more return on investment than Siit Long. However, Lord Abbett Convertible is 1.34 times less risky than Siit Long. It trades about 0.16 of its potential returns per unit of risk. Siit Long Duration is currently generating about 0.05 per unit of risk. If you would invest 1,192 in Lord Abbett Convertible on September 14, 2024 and sell it today you would earn a total of 290.00 from holding Lord Abbett Convertible or generate 24.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Siit Long Duration
Performance |
| Timeline |
| Lord Abbett Convertible |
| Siit Long Duration |
Lord Abbett and Siit Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Siit Long
The main advantage of trading using opposite Lord Abbett and Siit Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Siit Long 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 Siit Long will offset losses from the drop in Siit Long's long position.| Lord Abbett vs. Towpath Technology | Lord Abbett vs. Columbia Global Technology | Lord Abbett vs. Pgim Jennison Technology | Lord Abbett vs. Dreyfus Technology Growth |
| Siit Long vs. Advent Claymore Convertible | Siit Long vs. Absolute Convertible Arbitrage | Siit Long vs. Lord Abbett Convertible | Siit Long vs. Virtus 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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