Correlation Between Lord Abbett and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Nuveen Preferred 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 Nuveen Preferred 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 Nuveen Preferred And, you can compare the effects of market volatilities on Lord Abbett and Nuveen Preferred 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 Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Nuveen Preferred.
Diversification Opportunities for Lord Abbett and Nuveen Preferred
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Nuveen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Affiliated and Nuveen Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred And 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 Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred And has no effect on the direction of Lord Abbett i.e., Lord Abbett and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Lord Abbett and Nuveen Preferred
If you would invest 1,935 in Lord Abbett Affiliated on August 28, 2024 and sell it today you would earn a total of 156.00 from holding Lord Abbett Affiliated or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Lord Abbett Affiliated vs. Nuveen Preferred And
Performance |
| Timeline |
| Lord Abbett Affiliated |
| Nuveen Preferred And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lord Abbett and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Nuveen Preferred
The main advantage of trading using opposite Lord Abbett and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Nuveen Preferred 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 Nuveen Preferred will offset losses from the drop in Nuveen Preferred's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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