Correlation Between Lord Abbett and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Aim Investment 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 Aim Investment 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 Aim Investment Securities, you can compare the effects of market volatilities on Lord Abbett and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Aim Investment.
Diversification Opportunities for Lord Abbett and Aim Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Aim is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and Aim Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Securities 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Securities has no effect on the direction of Lord Abbett i.e., Lord Abbett and Aim Investment go up and down completely randomly.
Pair Corralation between Lord Abbett and Aim Investment
Assuming the 90 days horizon Lord Abbett Health is expected to under-perform the Aim Investment. In addition to that, Lord Abbett is 2.81 times more volatile than Aim Investment Securities. It trades about -0.03 of its total potential returns per unit of risk. Aim Investment Securities is currently generating about 0.22 per unit of volatility. If you would invest 1,988 in Aim Investment Securities on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Aim Investment Securities or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Health vs. Aim Investment Securities
Performance |
| Timeline |
| Lord Abbett Health |
| Aim Investment Securities |
Lord Abbett and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Aim Investment
The main advantage of trading using opposite Lord Abbett and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment'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 |
| Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Oppenheimer Rising Dividends |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |