Correlation Between Lord Abbett and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Shelton Funds 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 Shelton Funds 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 Shelton Funds , you can compare the effects of market volatilities on Lord Abbett and Shelton Funds 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 Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Shelton Funds.
Diversification Opportunities for Lord Abbett and Shelton Funds
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lord and Shelton is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Health and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds 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 Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Lord Abbett i.e., Lord Abbett and Shelton Funds go up and down completely randomly.
Pair Corralation between Lord Abbett and Shelton Funds
Assuming the 90 days horizon Lord Abbett Health is expected to generate 0.75 times more return on investment than Shelton Funds. However, Lord Abbett Health is 1.34 times less risky than Shelton Funds. It trades about 0.04 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.01 per unit of risk. If you would invest 1,853 in Lord Abbett Health on September 12, 2024 and sell it today you would earn a total of 93.00 from holding Lord Abbett Health or generate 5.02% 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. Shelton Funds
Performance |
| Timeline |
| Lord Abbett Health |
| Shelton Funds |
Lord Abbett and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Shelton Funds
The main advantage of trading using opposite Lord Abbett and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Shelton Funds 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 Shelton Funds will offset losses from the drop in Shelton Funds' long position.| Lord Abbett vs. Vanguard Health Care | Lord Abbett vs. Vanguard Health Care | Lord Abbett vs. T Rowe Price | Lord Abbett vs. T Rowe Price |
| Shelton Funds vs. American Funds The | Shelton Funds vs. American Funds The | Shelton Funds vs. Growth Fund Of | Shelton Funds vs. Growth Fund Of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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