Correlation Between Lord Abbett and The Hartford
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Focused and The Hartford Healthcare, you can compare the effects of market volatilities on Lord Abbett and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and The Hartford.
Diversification Opportunities for Lord Abbett and The Hartford
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and The is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Focused and The Hartford Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Healthcare 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 Focused are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Healthcare has no effect on the direction of Lord Abbett i.e., Lord Abbett and The Hartford go up and down completely randomly.
Pair Corralation between Lord Abbett and The Hartford
Assuming the 90 days horizon Lord Abbett is expected to generate 1.44 times less return on investment than The Hartford. In addition to that, Lord Abbett is 1.15 times more volatile than The Hartford Healthcare. It trades about 0.14 of its total potential returns per unit of risk. The Hartford Healthcare is currently generating about 0.24 per unit of volatility. If you would invest 4,431 in The Hartford Healthcare on November 9, 2024 and sell it today you would earn a total of 194.00 from holding The Hartford Healthcare or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Focused vs. The Hartford Healthcare
Performance |
| Timeline |
| Lord Abbett Focused |
| The Hartford Healthcare |
Lord Abbett and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and The Hartford
The main advantage of trading using opposite Lord Abbett and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Lord Abbett vs. Ab Small Cap | Lord Abbett vs. Cardinal Small Cap | Lord Abbett vs. Nt International Small Mid | Lord Abbett vs. Small Pany Growth |
| The Hartford vs. The Hartford Healthcare | The Hartford vs. Hartford Healthcare Hls | The Hartford vs. The Hartford Global | The Hartford vs. Hartford Healthcare Hls |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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