Correlation Between Lord Abbett and The Jensen
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and The Jensen 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 The Jensen 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 The Jensen Portfolio, you can compare the effects of market volatilities on Lord Abbett and The Jensen 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 The Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and The Jensen.
Diversification Opportunities for Lord Abbett and The Jensen
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and The is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Affiliated and The Jensen Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Portfolio 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 The Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Portfolio has no effect on the direction of Lord Abbett i.e., Lord Abbett and The Jensen go up and down completely randomly.
Pair Corralation between Lord Abbett and The Jensen
Assuming the 90 days horizon Lord Abbett Affiliated is expected to generate 0.88 times more return on investment than The Jensen. However, Lord Abbett Affiliated is 1.14 times less risky than The Jensen. It trades about 0.07 of its potential returns per unit of risk. The Jensen Portfolio is currently generating about 0.04 per unit of risk. If you would invest 1,552 in Lord Abbett Affiliated on September 3, 2024 and sell it today you would earn a total of 471.00 from holding Lord Abbett Affiliated or generate 30.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Affiliated vs. The Jensen Portfolio
Performance |
| Timeline |
| Lord Abbett Affiliated |
| Jensen Portfolio |
Lord Abbett and The Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and The Jensen
The main advantage of trading using opposite Lord Abbett and The Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, The Jensen 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 The Jensen will offset losses from the drop in The Jensen's long position.| Lord Abbett vs. Blackrock Conservative Prprdptfinstttnl | Lord Abbett vs. Harbor Diversified International | Lord Abbett vs. Prudential Core Conservative | Lord Abbett vs. Massmutual Select Diversified |
| The Jensen vs. The Jensen Portfolio | The Jensen vs. T Rowe Price | The Jensen vs. Champlain Mid Cap | The Jensen vs. Massachusetts Investors Growth |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |