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 High 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
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Catalyst/millburn is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett High 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 High 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 High is expected to generate 0.33 times more return on investment than Catalyst/millburn. However, Lord Abbett High is 3.04 times less risky than Catalyst/millburn. It trades about 0.22 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.07 per unit of risk. If you would invest 573.00 in Lord Abbett High on August 25, 2024 and sell it today you would earn a total of 74.00 from holding Lord Abbett High or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett High vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Lord Abbett High |
| 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. Ishares Municipal Bond | Lord Abbett vs. Bbh Intermediate Municipal | Lord Abbett vs. Pace Municipal Fixed | Lord Abbett vs. T Rowe Price |
| Catalyst/millburn vs. Guggenheim High Yield | Catalyst/millburn vs. Artisan High Income | Catalyst/millburn vs. Blackrock High Yield | Catalyst/millburn vs. Lord Abbett High |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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