Correlation Between Lord Abbett and Prudential Short
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Prudential Short 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 Prudential Short 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 Prudential Short Duration, you can compare the effects of market volatilities on Lord Abbett and Prudential Short 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 Prudential Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Prudential Short.
Diversification Opportunities for Lord Abbett and Prudential Short
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Prudential is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Prudential Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Short Duration 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 Prudential Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Short Duration has no effect on the direction of Lord Abbett i.e., Lord Abbett and Prudential Short go up and down completely randomly.
Pair Corralation between Lord Abbett and Prudential Short
Assuming the 90 days horizon Lord Abbett Short is expected to generate 0.59 times more return on investment than Prudential Short. However, Lord Abbett Short is 1.7 times less risky than Prudential Short. It trades about 0.22 of its potential returns per unit of risk. Prudential Short Duration is currently generating about -0.11 per unit of risk. If you would invest 387.00 in Lord Abbett Short on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Lord Abbett Short or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lord Abbett Short vs. Prudential Short Duration
Performance |
| Timeline |
| Lord Abbett Short |
| Prudential Short Duration |
Lord Abbett and Prudential Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Prudential Short
The main advantage of trading using opposite Lord Abbett and Prudential Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Prudential Short 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 Prudential Short will offset losses from the drop in Prudential Short'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 |
| Prudential Short vs. SCOR PK | Prudential Short vs. Morningstar Unconstrained Allocation | Prudential Short vs. Via Renewables | Prudential Short 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |