Correlation Between Lord Abbett and Salient Frontier
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Salient Frontier 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 Salient Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett High and Salient Frontier Strategy, you can compare the effects of market volatilities on Lord Abbett and Salient Frontier 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 Salient Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Salient Frontier.
Diversification Opportunities for Lord Abbett and Salient Frontier
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and SALIENT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett High and Salient Frontier Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Frontier Strategy 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 High are associated (or correlated) with Salient Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Frontier Strategy has no effect on the direction of Lord Abbett i.e., Lord Abbett and Salient Frontier go up and down completely randomly.
Pair Corralation between Lord Abbett and Salient Frontier
If you would invest 564.00 in Lord Abbett High on August 29, 2024 and sell it today you would earn a total of 84.00 from holding Lord Abbett High or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lord Abbett High vs. Salient Frontier Strategy
Performance |
| Timeline |
| Lord Abbett High |
| Salient Frontier Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lord Abbett and Salient Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Salient Frontier
The main advantage of trading using opposite Lord Abbett and Salient Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Salient Frontier 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 Salient Frontier will offset losses from the drop in Salient Frontier's long position.| Lord Abbett vs. Aqr Managed Futures | Lord Abbett vs. The Hartford Inflation | Lord Abbett vs. The Hartford Inflation | Lord Abbett vs. Guidepath Managed Futures |
| Salient Frontier vs. Blackrock High Yield | Salient Frontier vs. Lord Abbett High | Salient Frontier vs. Prudential High Yield |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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