Correlation Between Lord Abbett and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Micro Cap and Cohen Steers Prfrd, you can compare the effects of market volatilities on Lord Abbett and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Cohen Steers.
Diversification Opportunities for Lord Abbett and Cohen Steers
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Cohen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Micro Cap and Cohen Steers Prfrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prfrd 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 Micro Cap are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Prfrd has no effect on the direction of Lord Abbett i.e., Lord Abbett and Cohen Steers go up and down completely randomly.
Pair Corralation between Lord Abbett and Cohen Steers
Assuming the 90 days horizon Lord Abbett Micro Cap is expected to generate 11.66 times more return on investment than Cohen Steers. However, Lord Abbett is 11.66 times more volatile than Cohen Steers Prfrd. It trades about 0.22 of its potential returns per unit of risk. Cohen Steers Prfrd is currently generating about -0.07 per unit of risk. If you would invest 1,976 in Lord Abbett Micro Cap on August 29, 2024 and sell it today you would earn a total of 308.00 from holding Lord Abbett Micro Cap or generate 15.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Micro Cap vs. Cohen Steers Prfrd
Performance |
| Timeline |
| Lord Abbett Micro |
| Cohen Steers Prfrd |
Lord Abbett and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Cohen Steers
The main advantage of trading using opposite Lord Abbett and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Lord Abbett vs. Driehaus Micro Cap | Lord Abbett vs. Virtus Kar Small Cap | Lord Abbett vs. Morgan Stanley Multi | Lord Abbett vs. Internet Ultrasector Profund |
| Cohen Steers vs. Delaware Healthcare Fund | Cohen Steers vs. Alger Health Sciences | Cohen Steers vs. Prudential Health Sciences | Cohen Steers vs. Tekla Healthcare Opportunities |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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