Correlation Between Lord Abbett and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Floating Rate 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 Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inv and Floating Rate Fund, you can compare the effects of market volatilities on Lord Abbett and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Floating Rate.
Diversification Opportunities for Lord Abbett and Floating Rate
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Lord and Floating is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inv and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Inv are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Lord Abbett i.e., Lord Abbett and Floating Rate go up and down completely randomly.
Pair Corralation between Lord Abbett and Floating Rate
Assuming the 90 days horizon Lord Abbett Inv is expected to generate 0.74 times more return on investment than Floating Rate. However, Lord Abbett Inv is 1.36 times less risky than Floating Rate. It trades about 0.3 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.18 per unit of risk. If you would invest 813.00 in Lord Abbett Inv on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Lord Abbett Inv or generate 0.74% 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 Inv vs. Floating Rate Fund
Performance |
| Timeline |
| Lord Abbett Inv |
| Floating Rate |
Lord Abbett and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Floating Rate
The main advantage of trading using opposite Lord Abbett and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| Floating Rate vs. Lord Abbett Trust | Floating Rate vs. Lord Abbett Trust | Floating Rate vs. Lord Abbett Focused | Floating Rate vs. Floating Rate Fund |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |