Correlation Between Lord Abbett and Champlain Small
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Champlain Small 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 Champlain Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Global and Champlain Small, you can compare the effects of market volatilities on Lord Abbett and Champlain Small 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 Champlain Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Champlain Small.
Diversification Opportunities for Lord Abbett and Champlain Small
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Champlain is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Global and Champlain Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Small 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 Global are associated (or correlated) with Champlain Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Small has no effect on the direction of Lord Abbett i.e., Lord Abbett and Champlain Small go up and down completely randomly.
Pair Corralation between Lord Abbett and Champlain Small
Assuming the 90 days horizon Lord Abbett is expected to generate 2.33 times less return on investment than Champlain Small. But when comparing it to its historical volatility, Lord Abbett Global is 1.31 times less risky than Champlain Small. It trades about 0.07 of its potential returns per unit of risk. Champlain Small is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,136 in Champlain Small on September 1, 2024 and sell it today you would earn a total of 416.00 from holding Champlain Small or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lord Abbett Global vs. Champlain Small
Performance |
| Timeline |
| Lord Abbett Global |
| Champlain Small |
Lord Abbett and Champlain Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Champlain Small
The main advantage of trading using opposite Lord Abbett and Champlain Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Champlain Small 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 Champlain Small will offset losses from the drop in Champlain Small'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 |
| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance |