Correlation Between Lord Abbett and Thornburg Core
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Thornburg Core 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 Thornburg Core 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 Thornburg Core Plus, you can compare the effects of market volatilities on Lord Abbett and Thornburg Core 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 Thornburg Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Thornburg Core.
Diversification Opportunities for Lord Abbett and Thornburg Core
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and Thornburg is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Affiliated and Thornburg Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Core Plus 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 Thornburg Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Core Plus has no effect on the direction of Lord Abbett i.e., Lord Abbett and Thornburg Core go up and down completely randomly.
Pair Corralation between Lord Abbett and Thornburg Core
Assuming the 90 days horizon Lord Abbett Affiliated is expected to generate 1.86 times more return on investment than Thornburg Core. However, Lord Abbett is 1.86 times more volatile than Thornburg Core Plus. It trades about 0.12 of its potential returns per unit of risk. Thornburg Core Plus is currently generating about 0.08 per unit of risk. If you would invest 1,486 in Lord Abbett Affiliated on August 30, 2024 and sell it today you would earn a total of 619.00 from holding Lord Abbett Affiliated or generate 41.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 74.37% |
| Values | Daily Returns |
Lord Abbett Affiliated vs. Thornburg Core Plus
Performance |
| Timeline |
| Lord Abbett Affiliated |
| Thornburg Core Plus |
Lord Abbett and Thornburg Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Thornburg Core
The main advantage of trading using opposite Lord Abbett and Thornburg Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Thornburg Core 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 Thornburg Core will offset losses from the drop in Thornburg Core's long position.| Lord Abbett vs. Kinetics Global Fund | Lord Abbett vs. Massmutual Premier Global | Lord Abbett vs. Scharf Global Opportunity | Lord Abbett vs. T Rowe Price |
| Thornburg Core vs. T Rowe Price | Thornburg Core vs. Enhanced Large Pany | Thornburg Core vs. T Rowe Price | Thornburg Core vs. Hartford 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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