Correlation Between Lord Abbett and Polen International
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Polen 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 Polen International 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 Polen International Growth, you can compare the effects of market volatilities on Lord Abbett and Polen 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 Polen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Polen International.
Diversification Opportunities for Lord Abbett and Polen International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Polen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Floating and Polen International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen International 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 Polen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen International has no effect on the direction of Lord Abbett i.e., Lord Abbett and Polen International go up and down completely randomly.
Pair Corralation between Lord Abbett and Polen International
Assuming the 90 days horizon Lord Abbett is expected to generate 14.18 times less return on investment than Polen International. But when comparing it to its historical volatility, Lord Abbett Floating is 5.89 times less risky than Polen International. It trades about 0.04 of its potential returns per unit of risk. Polen International Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,622 in Polen International Growth on November 28, 2024 and sell it today you would earn a total of 28.00 from holding Polen International Growth or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Floating vs. Polen International Growth
Performance |
| Timeline |
| Lord Abbett Floating |
| Polen International |
Lord Abbett and Polen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Polen International
The main advantage of trading using opposite Lord Abbett and Polen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Polen 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 Polen International will offset losses from the drop in Polen International's long position.| Lord Abbett vs. Dodge Cox Stock | Lord Abbett vs. Tiaa Cref Large Cap Growth | Lord Abbett vs. Jpmorgan Large Cap | Lord Abbett vs. Wasatch Large Cap |
| Polen International vs. Polen Growth Fund | Polen International vs. Polen Growth Fund | Polen International vs. Polen Global Growth | Polen International vs. Polen Small |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |