Correlation Between Lord Abbett and Stadion Tactical
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Stadion Tactical 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 Stadion Tactical 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 Stadion Tactical Growth, you can compare the effects of market volatilities on Lord Abbett and Stadion Tactical 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 Stadion Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Stadion Tactical.
Diversification Opportunities for Lord Abbett and Stadion Tactical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Stadion is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Stadion Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadion Tactical Growth 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 Stadion Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadion Tactical Growth has no effect on the direction of Lord Abbett i.e., Lord Abbett and Stadion Tactical go up and down completely randomly.
Pair Corralation between Lord Abbett and Stadion Tactical
Assuming the 90 days horizon Lord Abbett is expected to generate 1.68 times less return on investment than Stadion Tactical. But when comparing it to its historical volatility, Lord Abbett Diversified is 2.35 times less risky than Stadion Tactical. It trades about 0.18 of its potential returns per unit of risk. Stadion Tactical Growth is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,582 in Stadion Tactical Growth on August 24, 2024 and sell it today you would earn a total of 34.00 from holding Stadion Tactical Growth or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Stadion Tactical Growth
Performance |
| Timeline |
| Lord Abbett Diversified |
| Stadion Tactical Growth |
Lord Abbett and Stadion Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Stadion Tactical
The main advantage of trading using opposite Lord Abbett and Stadion Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Stadion Tactical 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 Stadion Tactical will offset losses from the drop in Stadion Tactical's long position.| Lord Abbett vs. Tekla Healthcare Opportunities | Lord Abbett vs. Hartford Healthcare Hls | Lord Abbett vs. Deutsche Health And | Lord Abbett vs. Highland Longshort Healthcare |
| Stadion Tactical vs. Massmutual Select Small | Stadion Tactical vs. Baird Smallmid Cap | Stadion Tactical vs. M3sixty Capital Small | Stadion Tactical vs. Glg Intl Small |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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