Correlation Between Lord Abbett and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Oppenheimer Senior 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 Oppenheimer Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Floating and Oppenheimer Senior Floating, you can compare the effects of market volatilities on Lord Abbett and Oppenheimer Senior 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 Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Oppenheimer Senior.
Diversification Opportunities for Lord Abbett and Oppenheimer Senior
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Oppenheimer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Floating and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior 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 Floating are associated (or correlated) with Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Lord Abbett i.e., Lord Abbett and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Lord Abbett and Oppenheimer Senior
Assuming the 90 days horizon Lord Abbett Floating is expected to generate 0.91 times more return on investment than Oppenheimer Senior. However, Lord Abbett Floating is 1.09 times less risky than Oppenheimer Senior. It trades about 0.07 of its potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about -0.08 per unit of risk. If you would invest 818.00 in Lord Abbett Floating on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Lord Abbett Floating or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Floating vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Lord Abbett Floating |
| Oppenheimer Senior |
Lord Abbett and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Oppenheimer Senior
The main advantage of trading using opposite Lord Abbett and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Oppenheimer Senior 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 Oppenheimer Senior will offset losses from the drop in Oppenheimer Senior's long position.| Lord Abbett vs. Us Vector Equity | Lord Abbett vs. Us Strategic Equity | Lord Abbett vs. Ab Select Equity | Lord Abbett vs. Locorr Dynamic Equity |
| Oppenheimer Senior vs. Technology Ultrasector Profund | Oppenheimer Senior vs. Goldman Sachs Technology | Oppenheimer Senior vs. Dreyfus Technology Growth | Oppenheimer Senior vs. Towpath Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |