Correlation Between Lord Abbett and J Hancock
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and J Hancock 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 J Hancock 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 J Hancock Ii, you can compare the effects of market volatilities on Lord Abbett and J Hancock 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 J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and J Hancock.
Diversification Opportunities for Lord Abbett and J Hancock
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and JROUX is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii 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 J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of Lord Abbett i.e., Lord Abbett and J Hancock go up and down completely randomly.
Pair Corralation between Lord Abbett and J Hancock
Assuming the 90 days horizon Lord Abbett Health is expected to generate 1.45 times more return on investment than J Hancock. However, Lord Abbett is 1.45 times more volatile than J Hancock Ii. It trades about -0.01 of its potential returns per unit of risk. J Hancock Ii is currently generating about -0.02 per unit of risk. If you would invest 1,960 in Lord Abbett Health on November 7, 2024 and sell it today you would lose (18.00) from holding Lord Abbett Health or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Health vs. J Hancock Ii
Performance |
| Timeline |
| Lord Abbett Health |
| J Hancock Ii |
Lord Abbett and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and J Hancock
The main advantage of trading using opposite Lord Abbett and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, J Hancock 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 J Hancock will offset losses from the drop in J Hancock's long position.| Lord Abbett vs. Alliancebernstein Global Highome | Lord Abbett vs. Us Global Investors | Lord Abbett vs. Morningstar Global Income | Lord Abbett vs. Barings Global Floating |
| J Hancock vs. Franklin Gold Precious | J Hancock vs. Global Gold Fund | J Hancock vs. Oppenheimer Gold Special | J Hancock vs. Gabelli Gold 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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