Correlation Between Amg Managers and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Centersquare and Lord Abbett High, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Lord Abbett.
Diversification Opportunities for Amg Managers and Lord Abbett
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Lord is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare 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 Amg Managers 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 Amg Managers Centersquare 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 Amg Managers i.e., Amg Managers and Lord Abbett go up and down completely randomly.
Pair Corralation between Amg Managers and Lord Abbett
Assuming the 90 days horizon Amg Managers Centersquare is expected to under-perform the Lord Abbett. In addition to that, Amg Managers is 4.37 times more volatile than Lord Abbett High. It trades about -0.07 of its total potential returns per unit of risk. Lord Abbett High is currently generating about -0.27 per unit of volatility. If you would invest 630.00 in Lord Abbett High on January 12, 2025 and sell it today you would lose (19.00) from holding Lord Abbett High or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Lord Abbett High
Performance |
| Timeline |
| Amg Managers Centersquare |
| Lord Abbett High |
Amg Managers and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Lord Abbett
The main advantage of trading using opposite Amg Managers and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Delaware Limited Term Diversified | Amg Managers vs. Fidelity Advisor Diversified | Amg Managers vs. Massmutual Select Diversified | Amg Managers vs. Aqr Diversified Arbitrage |
| Lord Abbett vs. Lord Abbett High | Lord Abbett vs. Lord Abbett High | Lord Abbett vs. Mainstay High Yield | Lord Abbett vs. Ab High Income |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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