Correlation Between Lord Abbett and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Lord Abbett and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Strategic Asset.
Diversification Opportunities for Lord Abbett and Strategic Asset
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Strategic is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Lord Abbett i.e., Lord Abbett and Strategic Asset go up and down completely randomly.
Pair Corralation between Lord Abbett and Strategic Asset
Assuming the 90 days horizon Lord Abbett is expected to generate 1.75 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, Lord Abbett Diversified is 1.81 times less risky than Strategic Asset. It trades about 0.12 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,437 in Strategic Asset Management on September 14, 2024 and sell it today you would earn a total of 588.00 from holding Strategic Asset Management or generate 40.92% 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. Strategic Asset Management
Performance |
| Timeline |
| Lord Abbett Diversified |
| Strategic Asset Mana |
Lord Abbett and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Strategic Asset
The main advantage of trading using opposite Lord Abbett and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Lord Abbett vs. Qs Large Cap | Lord Abbett vs. Qs Large Cap | Lord Abbett vs. Pace Large Value | Lord Abbett vs. Dodge Cox Stock |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |