Correlation Between Lord Abbett and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Angel Oak Ultrashort, you can compare the effects of market volatilities on Lord Abbett and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Angel Oak.
Diversification Opportunities for Lord Abbett and Angel Oak
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lord and Angel is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort 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 Short are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Lord Abbett i.e., Lord Abbett and Angel Oak go up and down completely randomly.
Pair Corralation between Lord Abbett and Angel Oak
Assuming the 90 days horizon Lord Abbett is expected to generate 1.04 times less return on investment than Angel Oak. In addition to that, Lord Abbett is 1.63 times more volatile than Angel Oak Ultrashort. It trades about 0.14 of its total potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.24 per unit of volatility. If you would invest 902.00 in Angel Oak Ultrashort on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Angel Oak Ultrashort or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Lord Abbett Short |
| Angel Oak Ultrashort |
Lord Abbett and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Angel Oak
The main advantage of trading using opposite Lord Abbett and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Lord Abbett vs. Vanguard Short Term Bond | Lord Abbett vs. Vanguard Short Term Investment Grade | Lord Abbett vs. Vanguard Short Term Investment Grade | Lord Abbett vs. Vanguard Short Term Investment Grade |
| Angel Oak vs. SCOR PK | Angel Oak vs. Morningstar Unconstrained Allocation | Angel Oak vs. Via Renewables | Angel Oak vs. Bondbloxx ETF Trust |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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