Correlation Between Lord Abbett and Astor Star
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Astor Star 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 Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Affiliated and Astor Star Fund, you can compare the effects of market volatilities on Lord Abbett and Astor Star 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 Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Astor Star.
Diversification Opportunities for Lord Abbett and Astor Star
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Astor is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Affiliated and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund 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 Affiliated are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Lord Abbett i.e., Lord Abbett and Astor Star go up and down completely randomly.
Pair Corralation between Lord Abbett and Astor Star
Assuming the 90 days horizon Lord Abbett Affiliated is expected to generate 1.28 times more return on investment than Astor Star. However, Lord Abbett is 1.28 times more volatile than Astor Star Fund. It trades about 0.12 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.13 per unit of risk. If you would invest 1,781 in Lord Abbett Affiliated on August 27, 2024 and sell it today you would earn a total of 310.00 from holding Lord Abbett Affiliated or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Affiliated vs. Astor Star Fund
Performance |
| Timeline |
| Lord Abbett Affiliated |
| Astor Star Fund |
Lord Abbett and Astor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Astor Star
The main advantage of trading using opposite Lord Abbett and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Astor Star 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 Astor Star will offset losses from the drop in Astor Star's long position.| Lord Abbett vs. Ab Municipal Bond | Lord Abbett vs. Short Duration Inflation | Lord Abbett vs. Loomis Sayles Inflation | Lord Abbett vs. Guidepath Managed Futures |
| Astor Star vs. Astor Longshort Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Fidelity Balanced Fund | Astor Star vs. Thrivent Moderate Allocation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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