Correlation Between Lord Abbett and Dodge International
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Dodge International 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 Dodge International 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 Dodge International Stock, you can compare the effects of market volatilities on Lord Abbett and Dodge International 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 Dodge International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Dodge International.
Diversification Opportunities for Lord Abbett and Dodge International
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lord and Dodge is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Growth and Dodge International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge International Stock 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 Dodge International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge International Stock has no effect on the direction of Lord Abbett i.e., Lord Abbett and Dodge International go up and down completely randomly.
Pair Corralation between Lord Abbett and Dodge International
Assuming the 90 days horizon Lord Abbett Growth is expected to generate 1.71 times more return on investment than Dodge International. However, Lord Abbett is 1.71 times more volatile than Dodge International Stock. It trades about 0.11 of its potential returns per unit of risk. Dodge International Stock is currently generating about 0.06 per unit of risk. If you would invest 1,957 in Lord Abbett Growth on September 14, 2024 and sell it today you would earn a total of 899.00 from holding Lord Abbett Growth or generate 45.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Lord Abbett Growth vs. Dodge International Stock
Performance |
| Timeline |
| Lord Abbett Growth |
| Dodge International Stock |
Lord Abbett and Dodge International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Dodge International
The main advantage of trading using opposite Lord Abbett and Dodge International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Dodge International 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 Dodge International will offset losses from the drop in Dodge International's long position.| Lord Abbett vs. Dodge International Stock | Lord Abbett vs. Huber Capital Equity | Lord Abbett vs. Ms Global Fixed | Lord Abbett vs. Dreyfusnewton International Equity |
| Dodge International vs. Dodge Stock Fund | Dodge International vs. Dodge Income Fund | Dodge International vs. Dodge Balanced Fund | Dodge International vs. The Fairholme 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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