Correlation Between Lord Abbett and Sit International
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Sit International 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 Sit International 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 Sit International Growth, you can compare the effects of market volatilities on Lord Abbett and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Sit International.
Diversification Opportunities for Lord Abbett and Sit International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and Sit is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Sit International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Growth 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 Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Growth has no effect on the direction of Lord Abbett i.e., Lord Abbett and Sit International go up and down completely randomly.
Pair Corralation between Lord Abbett and Sit International
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 0.65 times more return on investment than Sit International. However, Lord Abbett Convertible is 1.53 times less risky than Sit International. It trades about 0.13 of its potential returns per unit of risk. Sit International Growth is currently generating about 0.05 per unit of risk. If you would invest 1,255 in Lord Abbett Convertible on September 14, 2024 and sell it today you would earn a total of 227.00 from holding Lord Abbett Convertible or generate 18.09% 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. Sit International Growth
Performance |
| Timeline |
| Lord Abbett Convertible |
| Sit International Growth |
Lord Abbett and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Sit International
The main advantage of trading using opposite Lord Abbett and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International'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 |
| Sit International vs. Schwab Treasury Inflation | Sit International vs. Short Duration Inflation | Sit International vs. Guggenheim Managed Futures | Sit International vs. Ab Bond Inflation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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