Correlation Between L Abbett and Mainstay Common
Can any of the company-specific risk be diversified away by investing in both L Abbett and Mainstay Common 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 L Abbett and Mainstay Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Growth and Mainstay Mon Stock, you can compare the effects of market volatilities on L Abbett and Mainstay Common 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 L Abbett with a short position of Mainstay Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Mainstay Common.
Diversification Opportunities for L Abbett and Mainstay Common
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LGLSX and MAINSTAY is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock and L 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 L Abbett Growth are associated (or correlated) with Mainstay Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of L Abbett i.e., L Abbett and Mainstay Common go up and down completely randomly.
Pair Corralation between L Abbett and Mainstay Common
Assuming the 90 days horizon L Abbett Growth is expected to generate 1.37 times more return on investment than Mainstay Common. However, L Abbett is 1.37 times more volatile than Mainstay Mon Stock. It trades about 0.44 of its potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.38 per unit of risk. If you would invest 4,279 in L Abbett Growth on September 4, 2024 and sell it today you would earn a total of 522.00 from holding L Abbett Growth or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Growth vs. Mainstay Mon Stock
Performance |
| Timeline |
| L Abbett Growth |
| Mainstay Mon Stock |
L Abbett and Mainstay Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Mainstay Common
The main advantage of trading using opposite L Abbett and Mainstay Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Mainstay Common 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 Mainstay Common will offset losses from the drop in Mainstay Common's long position.| L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Focused | L Abbett vs. Floating Rate Fund |
| Mainstay Common vs. Small Pany Growth | Mainstay Common vs. Pace Smallmedium Growth | Mainstay Common vs. Artisan Small Cap | Mainstay Common vs. L Abbett Growth |
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 Positions Ratings module to 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.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |