Correlation Between Lord Abbett and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Mainstay Epoch 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 Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Small and Mainstay Epoch International, you can compare the effects of market volatilities on Lord Abbett and Mainstay Epoch 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 Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Mainstay Epoch.
Diversification Opportunities for Lord Abbett and Mainstay Epoch
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lord and Mainstay is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Small and Mainstay Epoch International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Inter 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 Small are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Inter has no effect on the direction of Lord Abbett i.e., Lord Abbett and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Lord Abbett and Mainstay Epoch
Assuming the 90 days horizon Lord Abbett Small is expected to under-perform the Mainstay Epoch. In addition to that, Lord Abbett is 1.57 times more volatile than Mainstay Epoch International. It trades about -0.15 of its total potential returns per unit of risk. Mainstay Epoch International is currently generating about -0.23 per unit of volatility. If you would invest 4,132 in Mainstay Epoch International on January 5, 2025 and sell it today you would lose (291.00) from holding Mainstay Epoch International or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lord Abbett Small vs. Mainstay Epoch International
Performance |
| Timeline |
| Lord Abbett Small |
| Mainstay Epoch Inter |
Lord Abbett and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Mainstay Epoch
The main advantage of trading using opposite Lord Abbett and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Mainstay Epoch 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 Epoch will offset losses from the drop in Mainstay Epoch's long position.| Lord Abbett vs. Absolute Convertible Arbitrage | Lord Abbett vs. Advent Claymore Convertible | Lord Abbett vs. Columbia Convertible Securities | Lord Abbett vs. Fidelity Sai Convertible |
| Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Winslow Large |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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