Correlation Between Lord Abbett and Oklahoma College
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Oklahoma College 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 Oklahoma College 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 Oklahoma College Savings, you can compare the effects of market volatilities on Lord Abbett and Oklahoma College 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 Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Oklahoma College.
Diversification Opportunities for Lord Abbett and Oklahoma College
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Oklahoma is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings 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 Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Lord Abbett i.e., Lord Abbett and Oklahoma College go up and down completely randomly.
Pair Corralation between Lord Abbett and Oklahoma College
Assuming the 90 days horizon Lord Abbett is expected to generate 2.9 times less return on investment than Oklahoma College. But when comparing it to its historical volatility, Lord Abbett Diversified is 1.87 times less risky than Oklahoma College. It trades about 0.19 of its potential returns per unit of risk. Oklahoma College Savings is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,175 in Oklahoma College Savings on October 26, 2024 and sell it today you would earn a total of 49.00 from holding Oklahoma College Savings or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Oklahoma College Savings
Performance |
| Timeline |
| Lord Abbett Diversified |
| Oklahoma College Savings |
Lord Abbett and Oklahoma College Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Oklahoma College
The main advantage of trading using opposite Lord Abbett and Oklahoma College positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Oklahoma College 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 Oklahoma College will offset losses from the drop in Oklahoma College's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| Oklahoma College vs. Precious Metals And | Oklahoma College vs. James Balanced Golden | Oklahoma College vs. Invesco Gold Special | Oklahoma College vs. Sprott Gold Equity |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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