Correlation Between Lord Abbett and Guggenheim Macro
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Guggenheim Macro 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 Guggenheim Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on Lord Abbett and Guggenheim Macro 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 Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Guggenheim Macro.
Diversification Opportunities for Lord Abbett and Guggenheim Macro
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Guggenheim is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Guggenheim Macro Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Macro Opp 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 Short are associated (or correlated) with Guggenheim Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Macro Opp has no effect on the direction of Lord Abbett i.e., Lord Abbett and Guggenheim Macro go up and down completely randomly.
Pair Corralation between Lord Abbett and Guggenheim Macro
Assuming the 90 days horizon Lord Abbett is expected to generate 1.19 times less return on investment than Guggenheim Macro. In addition to that, Lord Abbett is 1.65 times more volatile than Guggenheim Macro Opportunities. It trades about 0.12 of its total potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about 0.24 per unit of volatility. If you would invest 2,463 in Guggenheim Macro Opportunities on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Guggenheim Macro Opportunities or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lord Abbett Short vs. Guggenheim Macro Opportunities
Performance |
| Timeline |
| Lord Abbett Short |
| Guggenheim Macro Opp |
Lord Abbett and Guggenheim Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Guggenheim Macro
The main advantage of trading using opposite Lord Abbett and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Guggenheim Macro 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 Guggenheim Macro will offset losses from the drop in Guggenheim Macro's long position.| Lord Abbett vs. Vanguard Short Term Bond | Lord Abbett vs. Vanguard Short Term Investment Grade | Lord Abbett vs. Vanguard Short Term Investment Grade | Lord Abbett vs. Vanguard Short Term Bond |
| Guggenheim Macro vs. HUMANA INC | Guggenheim Macro vs. Aquagold International | Guggenheim Macro vs. Barloworld Ltd ADR | Guggenheim Macro vs. Morningstar Unconstrained Allocation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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