Correlation Between Lord Abbett and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Catalyst/millburn 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 Catalyst/millburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Lord Abbett and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Catalyst/millburn.
Diversification Opportunities for Lord Abbett and Catalyst/millburn
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lord and Catalyst/millburn is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Lord Abbett i.e., Lord Abbett and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Lord Abbett and Catalyst/millburn
Assuming the 90 days horizon Lord Abbett is expected to generate 2.19 times less return on investment than Catalyst/millburn. In addition to that, Lord Abbett is 1.66 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.01 of its total potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.04 per unit of volatility. If you would invest 3,866 in Catalystmillburn Hedge Strategy on October 25, 2024 and sell it today you would earn a total of 105.00 from holding Catalystmillburn Hedge Strategy or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Health vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Lord Abbett Health |
| Catalystmillburn Hedge |
Lord Abbett and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Catalyst/millburn
The main advantage of trading using opposite Lord Abbett and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Lord Abbett vs. Heartland Value Plus | Lord Abbett vs. Small Cap Value | Lord Abbett vs. Fidelity Small Cap | Lord Abbett vs. William Blair Small |
| Catalyst/millburn vs. Wabmsx | Catalyst/millburn vs. Fwnhtx | Catalyst/millburn vs. Tax Managed Large Cap | Catalyst/millburn vs. Wmcanx |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |