Correlation Between Lord Abbett and American Independence
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and American Independence 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 American Independence 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 American Independence Kansas, you can compare the effects of market volatilities on Lord Abbett and American Independence 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 American Independence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and American Independence.
Diversification Opportunities for Lord Abbett and American Independence
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and American Independence Kansas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Independence 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 American Independence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Independence has no effect on the direction of Lord Abbett i.e., Lord Abbett and American Independence go up and down completely randomly.
Pair Corralation between Lord Abbett and American Independence
If you would invest 1,562 in Lord Abbett Health on September 15, 2024 and sell it today you would earn a total of 351.00 from holding Lord Abbett Health or generate 22.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lord Abbett Health vs. American Independence Kansas
Performance |
| Timeline |
| Lord Abbett Health |
| American Independence |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lord Abbett and American Independence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and American Independence
The main advantage of trading using opposite Lord Abbett and American Independence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, American Independence 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 American Independence will offset losses from the drop in American Independence's long position.| Lord Abbett vs. Lord Abbett Short | Lord Abbett vs. Prudential Short Duration | Lord Abbett vs. Boston Partners Longshort | Lord Abbett vs. Siit Ultra Short |
| American Independence vs. Lord Abbett Health | American Independence vs. Baillie Gifford Health | American Independence vs. Baron Health Care | American Independence vs. Health Biotchnology Portfolio |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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