Correlation Between Lord Abbett and Ab Ohio
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Ab Ohio 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 Ab Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Health and Ab Ohio Portfolio, you can compare the effects of market volatilities on Lord Abbett and Ab Ohio 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 Ab Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Ab Ohio.
Diversification Opportunities for Lord Abbett and Ab Ohio
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lord and AOHCX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and Ab Ohio Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Ohio Portfolio 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 Health are associated (or correlated) with Ab Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Ohio Portfolio has no effect on the direction of Lord Abbett i.e., Lord Abbett and Ab Ohio go up and down completely randomly.
Pair Corralation between Lord Abbett and Ab Ohio
Assuming the 90 days horizon Lord Abbett Health is expected to generate 4.39 times more return on investment than Ab Ohio. However, Lord Abbett is 4.39 times more volatile than Ab Ohio Portfolio. It trades about 0.04 of its potential returns per unit of risk. Ab Ohio Portfolio is currently generating about 0.07 per unit of risk. If you would invest 1,684 in Lord Abbett Health on September 13, 2024 and sell it today you would earn a total of 265.00 from holding Lord Abbett Health or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Health vs. Ab Ohio Portfolio
Performance |
| Timeline |
| Lord Abbett Health |
| Ab Ohio Portfolio |
Lord Abbett and Ab Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Ab Ohio
The main advantage of trading using opposite Lord Abbett and Ab Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Ab Ohio 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 Ab Ohio will offset losses from the drop in Ab Ohio's long position.| Lord Abbett vs. Commonwealth Global Fund | Lord Abbett vs. L Abbett Fundamental | Lord Abbett vs. Eic Value Fund | Lord Abbett vs. Ab Small Cap |
| Ab Ohio vs. Aqr Small Cap | Ab Ohio vs. Pace Smallmedium Value | Ab Ohio vs. Old Westbury Small | Ab Ohio vs. Ab Small Cap |
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.
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