Correlation Between Lord Abbett and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Guinness Atkinson 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 Guinness Atkinson 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 Guinness Atkinson Alternative, you can compare the effects of market volatilities on Lord Abbett and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Guinness Atkinson.
Diversification Opportunities for Lord Abbett and Guinness Atkinson
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and Guinness is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Growth and Guinness Atkinson Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson has no effect on the direction of Lord Abbett i.e., Lord Abbett and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Lord Abbett and Guinness Atkinson
Assuming the 90 days horizon Lord Abbett Growth is expected to generate 1.24 times more return on investment than Guinness Atkinson. However, Lord Abbett is 1.24 times more volatile than Guinness Atkinson Alternative. It trades about 0.39 of its potential returns per unit of risk. Guinness Atkinson Alternative is currently generating about -0.22 per unit of risk. If you would invest 2,972 in Lord Abbett Growth on August 29, 2024 and sell it today you would earn a total of 394.00 from holding Lord Abbett Growth or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Growth vs. Guinness Atkinson Alternative
Performance |
| Timeline |
| Lord Abbett Growth |
| Guinness Atkinson |
Lord Abbett and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Guinness Atkinson
The main advantage of trading using opposite Lord Abbett and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Lord Abbett vs. Guinness Atkinson Alternative | Lord Abbett vs. Hennessy Bp Energy | Lord Abbett vs. Clearbridge Energy Mlp | Lord Abbett vs. Gamco Natural Resources |
| Guinness Atkinson vs. Firsthand Alternative Energy | Guinness Atkinson vs. Portfolio 21 Global | Guinness Atkinson vs. HUMANA INC | Guinness Atkinson vs. Aquagold International |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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