Correlation Between Lord Abbett and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Nebraska Municipal 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 Nebraska Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Growth and Nebraska Municipal Fund, you can compare the effects of market volatilities on Lord Abbett and Nebraska Municipal 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 Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Nebraska Municipal.
Diversification Opportunities for Lord Abbett and Nebraska Municipal
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and Nebraska is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Growth and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal 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 Growth are associated (or correlated) with Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Lord Abbett i.e., Lord Abbett and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Lord Abbett and Nebraska Municipal
Assuming the 90 days horizon Lord Abbett Growth is expected to generate 5.74 times more return on investment than Nebraska Municipal. However, Lord Abbett is 5.74 times more volatile than Nebraska Municipal Fund. It trades about 0.13 of its potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.11 per unit of risk. If you would invest 3,671 in Lord Abbett Growth on September 1, 2024 and sell it today you would earn a total of 910.00 from holding Lord Abbett Growth or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lord Abbett Growth vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Lord Abbett Growth |
| Nebraska Municipal |
Lord Abbett and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Nebraska Municipal
The main advantage of trading using opposite Lord Abbett and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Lord Abbett vs. California Bond Fund | Lord Abbett vs. Thrivent Income Fund | Lord Abbett vs. Bbh Intermediate Municipal | Lord Abbett vs. Oklahoma Municipal Fund |
| Nebraska Municipal vs. Lord Abbett Convertible | Nebraska Municipal vs. Harbor Vertible Securities | Nebraska Municipal vs. Virtus Convertible | Nebraska Municipal vs. Rationalpier 88 Convertible |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |