Correlation Between Lord Abbett and Dreyfus Amt
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Dreyfus Amt 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 Dreyfus Amt 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 Dreyfus Amt Free Municipal, you can compare the effects of market volatilities on Lord Abbett and Dreyfus Amt 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 Dreyfus Amt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Dreyfus Amt.
Diversification Opportunities for Lord Abbett and Dreyfus Amt
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Dreyfus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Dreyfus Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Amt Free 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 Dreyfus Amt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Amt Free has no effect on the direction of Lord Abbett i.e., Lord Abbett and Dreyfus Amt go up and down completely randomly.
Pair Corralation between Lord Abbett and Dreyfus Amt
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 1.45 times more return on investment than Dreyfus Amt. However, Lord Abbett is 1.45 times more volatile than Dreyfus Amt Free Municipal. It trades about 0.15 of its potential returns per unit of risk. Dreyfus Amt Free Municipal is currently generating about -0.01 per unit of risk. If you would invest 1,536 in Lord Abbett Diversified on November 3, 2024 and sell it today you would earn a total of 102.00 from holding Lord Abbett Diversified or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Dreyfus Amt Free Municipal
Performance |
| Timeline |
| Lord Abbett Diversified |
| Dreyfus Amt Free |
Lord Abbett and Dreyfus Amt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Dreyfus Amt
The main advantage of trading using opposite Lord Abbett and Dreyfus Amt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Dreyfus Amt 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 Dreyfus Amt will offset losses from the drop in Dreyfus Amt's long position.| Lord Abbett vs. Guggenheim Managed Futures | Lord Abbett vs. Cref Inflation Linked Bond | Lord Abbett vs. Guidepath Managed Futures | Lord Abbett vs. Ab Bond Inflation |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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