Correlation Between Lord Abbett and Inverse Nasdaq-100
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Inverse Nasdaq-100 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 Inverse Nasdaq-100 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 Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on Lord Abbett and Inverse Nasdaq-100 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 Inverse Nasdaq-100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Inverse Nasdaq-100.
Diversification Opportunities for Lord Abbett and Inverse Nasdaq-100
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and Inverse is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 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 Inverse Nasdaq-100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of Lord Abbett i.e., Lord Abbett and Inverse Nasdaq-100 go up and down completely randomly.
Pair Corralation between Lord Abbett and Inverse Nasdaq-100
Assuming the 90 days horizon Lord Abbett Short is expected to generate 0.18 times more return on investment than Inverse Nasdaq-100. However, Lord Abbett Short is 5.67 times less risky than Inverse Nasdaq-100. It trades about 0.07 of its potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about 0.0 per unit of risk. If you would invest 985.00 in Lord Abbett Short on October 30, 2024 and sell it today you would earn a total of 6.00 from holding Lord Abbett Short or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Inverse Nasdaq 100 Strategy
Performance |
| Timeline |
| Lord Abbett Short |
| Inverse Nasdaq 100 |
Lord Abbett and Inverse Nasdaq-100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Inverse Nasdaq-100
The main advantage of trading using opposite Lord Abbett and Inverse Nasdaq-100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Inverse Nasdaq-100 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 Inverse Nasdaq-100 will offset losses from the drop in Inverse Nasdaq-100's long position.| Lord Abbett vs. Blackrock High Yield | Lord Abbett vs. Jpmorgan High Yield | Lord Abbett vs. Federated High Yield | Lord Abbett vs. Neuberger Berman Income |
| Inverse Nasdaq-100 vs. Aqr Long Short Equity | Inverse Nasdaq-100 vs. Goldman Sachs Equity | Inverse Nasdaq-100 vs. Dreyfusstandish Global Fixed | Inverse Nasdaq-100 vs. Siit Equity Factor |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |