Correlation Between Lord Abbett and Mainstay Total
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Mainstay Total 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 Mainstay Total 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 Mainstay Total Return, you can compare the effects of market volatilities on Lord Abbett and Mainstay Total 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 Mainstay Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Mainstay Total.
Diversification Opportunities for Lord Abbett and Mainstay Total
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and Mainstay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Mainstay Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Total Return 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 Mainstay Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Total Return has no effect on the direction of Lord Abbett i.e., Lord Abbett and Mainstay Total go up and down completely randomly.
Pair Corralation between Lord Abbett and Mainstay Total
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 0.85 times more return on investment than Mainstay Total. However, Lord Abbett Diversified is 1.17 times less risky than Mainstay Total. It trades about 0.1 of its potential returns per unit of risk. Mainstay Total Return is currently generating about 0.06 per unit of risk. If you would invest 1,364 in Lord Abbett Diversified on August 26, 2024 and sell it today you would earn a total of 276.00 from holding Lord Abbett Diversified or generate 20.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Mainstay Total Return
Performance |
| Timeline |
| Lord Abbett Diversified |
| Mainstay Total Return |
Lord Abbett and Mainstay Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Mainstay Total
The main advantage of trading using opposite Lord Abbett and Mainstay Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Mainstay Total 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 Mainstay Total will offset losses from the drop in Mainstay Total's long position.| Lord Abbett vs. Kinetics Spin Off And | Lord Abbett vs. Limited Term Tax | Lord Abbett vs. Ultra Short Term Fixed | Lord Abbett vs. Gmo Emerging Country |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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