Correlation Between Lord Abbett and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Dunham Dynamic 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 Dunham Dynamic 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 Dunham Dynamic Macro, you can compare the effects of market volatilities on Lord Abbett and Dunham Dynamic 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 Dunham Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Dunham Dynamic.
Diversification Opportunities for Lord Abbett and Dunham Dynamic
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and Dunham is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro 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 Dunham Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Lord Abbett i.e., Lord Abbett and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Lord Abbett and Dunham Dynamic
Assuming the 90 days horizon Lord Abbett is expected to generate 1.46 times less return on investment than Dunham Dynamic. In addition to that, Lord Abbett is 1.23 times more volatile than Dunham Dynamic Macro. It trades about 0.13 of its total potential returns per unit of risk. Dunham Dynamic Macro is currently generating about 0.23 per unit of volatility. If you would invest 1,179 in Dunham Dynamic Macro on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Dunham Dynamic Macro or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Dunham Dynamic Macro
Performance |
| Timeline |
| Lord Abbett Short |
| Dunham Dynamic Macro |
Lord Abbett and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Dunham Dynamic
The main advantage of trading using opposite Lord Abbett and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Dunham Dynamic 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 Dunham Dynamic will offset losses from the drop in Dunham Dynamic's long position.| Lord Abbett vs. Towpath Technology | Lord Abbett vs. Goldman Sachs Technology | Lord Abbett vs. Global Technology Portfolio | Lord Abbett vs. Red Oak Technology |
| Dunham Dynamic vs. Inverse Government Long | Dunham Dynamic vs. Ridgeworth Seix Government | Dunham Dynamic vs. Payden Government Fund | Dunham Dynamic vs. Federated Government Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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