Correlation Between Lord Abbett and Avantis International
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Avantis International 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 Avantis International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and Avantis International Small, you can compare the effects of market volatilities on Lord Abbett and Avantis International 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 Avantis International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Avantis International.
Diversification Opportunities for Lord Abbett and Avantis International
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lord and Avantis is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Avantis International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis International 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 Diversified are associated (or correlated) with Avantis International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis International has no effect on the direction of Lord Abbett i.e., Lord Abbett and Avantis International go up and down completely randomly.
Pair Corralation between Lord Abbett and Avantis International
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 0.41 times more return on investment than Avantis International. However, Lord Abbett Diversified is 2.45 times less risky than Avantis International. It trades about 0.2 of its potential returns per unit of risk. Avantis International Small is currently generating about -0.03 per unit of risk. If you would invest 1,618 in Lord Abbett Diversified on August 27, 2024 and sell it today you would earn a total of 22.00 from holding Lord Abbett Diversified or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Avantis International Small
Performance |
| Timeline |
| Lord Abbett Diversified |
| Avantis International |
Lord Abbett and Avantis International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Avantis International
The main advantage of trading using opposite Lord Abbett and Avantis International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Avantis International 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 Avantis International will offset losses from the drop in Avantis International's long position.| Lord Abbett vs. Rbb Fund | Lord Abbett vs. Qs Large Cap | Lord Abbett vs. Ab Global Risk | Lord Abbett vs. Omni Small Cap Value |
| Avantis International vs. Rbb Fund | Avantis International vs. Archer Balanced Fund | Avantis International vs. Volumetric Fund Volumetric | Avantis International vs. Lord Abbett Diversified |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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