Correlation Between Lord Abbett and Aig Government
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Aig Government 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 Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inflation and Aig Government Money, you can compare the effects of market volatilities on Lord Abbett and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Aig Government.
Diversification Opportunities for Lord Abbett and Aig Government
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lord and Aig is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inflation and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Inflation are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Lord Abbett i.e., Lord Abbett and Aig Government go up and down completely randomly.
Pair Corralation between Lord Abbett and Aig Government
Assuming the 90 days horizon Lord Abbett Inflation is expected to generate 1.07 times more return on investment than Aig Government. However, Lord Abbett is 1.07 times more volatile than Aig Government Money. It trades about 0.1 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.02 per unit of risk. If you would invest 1,055 in Lord Abbett Inflation on October 30, 2024 and sell it today you would earn a total of 111.00 from holding Lord Abbett Inflation or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Inflation vs. Aig Government Money
Performance |
| Timeline |
| Lord Abbett Inflation |
| Aig Government Money |
Lord Abbett and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Aig Government
The main advantage of trading using opposite Lord Abbett and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Lord Abbett vs. Schwab Government Money | Lord Abbett vs. Blackrock Exchange Portfolio | Lord Abbett vs. Hsbc Treasury Money | Lord Abbett vs. Dws Government Money |
| Aig Government vs. Stone Ridge Diversified | Aig Government vs. Wilmington Diversified Income | Aig Government vs. Lord Abbett Diversified | Aig Government vs. T Rowe Price |
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 Stocks Directory module to find actively traded stocks across global markets.
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