Correlation Between Mainstay Candriam and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Mainstay Candriam and Lord Abbett 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 Mainstay Candriam and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Candriam Emerging and Lord Abbett High, you can compare the effects of market volatilities on Mainstay Candriam and Lord Abbett 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 Mainstay Candriam with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Candriam and Lord Abbett.
Diversification Opportunities for Mainstay Candriam and Lord Abbett
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Lord is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Candriam Emerging and Lord Abbett High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett High and Mainstay Candriam 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 Mainstay Candriam Emerging are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett High has no effect on the direction of Mainstay Candriam i.e., Mainstay Candriam and Lord Abbett go up and down completely randomly.
Pair Corralation between Mainstay Candriam and Lord Abbett
Assuming the 90 days horizon Mainstay Candriam Emerging is expected to under-perform the Lord Abbett. In addition to that, Mainstay Candriam is 5.43 times more volatile than Lord Abbett High. It trades about -0.06 of its total potential returns per unit of risk. Lord Abbett High is currently generating about 0.0 per unit of volatility. If you would invest 650.00 in Lord Abbett High on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Lord Abbett High or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Candriam Emerging vs. Lord Abbett High
Performance |
| Timeline |
| Mainstay Candriam |
| Lord Abbett High |
Mainstay Candriam and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Candriam and Lord Abbett
The main advantage of trading using opposite Mainstay Candriam and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Candriam position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Mainstay Candriam vs. Tfa Alphagen Growth | Mainstay Candriam vs. Praxis Growth Index | Mainstay Candriam vs. Rational Defensive Growth | Mainstay Candriam vs. L Abbett Growth |
| Lord Abbett vs. Elfun Diversified Fund | Lord Abbett vs. Wealthbuilder Conservative Allocation | Lord Abbett vs. Lord Abbett Diversified | Lord Abbett vs. Federated Hermes Conservative |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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