Correlation Between Lord Abbett and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Lazard Enhanced 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 Lazard Enhanced 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 Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Lord Abbett and Lazard Enhanced 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 Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Lazard Enhanced.
Diversification Opportunities for Lord Abbett and Lazard Enhanced
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lord and Lazard is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett High and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo 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 Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Lord Abbett i.e., Lord Abbett and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Lord Abbett and Lazard Enhanced
Assuming the 90 days horizon Lord Abbett High is expected to generate 4.07 times more return on investment than Lazard Enhanced. However, Lord Abbett is 4.07 times more volatile than Lazard Enhanced Opportunities. It trades about 0.06 of its potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.21 per unit of risk. If you would invest 538.00 in Lord Abbett High on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Lord Abbett High or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett High vs. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Lord Abbett High |
| Lazard Enhanced Oppo |
Lord Abbett and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Lazard Enhanced
The main advantage of trading using opposite Lord Abbett and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Lazard Enhanced 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 Lazard Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Lord Abbett vs. Elfun Diversified Fund | Lord Abbett vs. Wealthbuilder Conservative Allocation | Lord Abbett vs. Lord Abbett Diversified | Lord Abbett vs. Federated Hermes Conservative |
| Lazard Enhanced vs. Adams Diversified Equity | Lazard Enhanced vs. Davenport Small Cap | Lazard Enhanced vs. Pioneer Diversified High | Lazard Enhanced vs. Tiaa Cref Small Cap Blend |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |