Correlation Between Nuveen Winslow and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Nuveen Winslow 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 Nuveen Winslow and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Winslow Large Cap and Lord Abbett Trust, you can compare the effects of market volatilities on Nuveen Winslow 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 Nuveen Winslow with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Winslow and Lord Abbett.
Diversification Opportunities for Nuveen Winslow and Lord Abbett
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NUVEEN and Lord is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Winslow Large Cap and Lord Abbett Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Trust and Nuveen Winslow 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 Nuveen Winslow Large Cap 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 Trust has no effect on the direction of Nuveen Winslow i.e., Nuveen Winslow and Lord Abbett go up and down completely randomly.
Pair Corralation between Nuveen Winslow and Lord Abbett
Assuming the 90 days horizon Nuveen Winslow Large Cap is expected to generate 1.38 times more return on investment than Lord Abbett. However, Nuveen Winslow is 1.38 times more volatile than Lord Abbett Trust. It trades about 0.12 of its potential returns per unit of risk. Lord Abbett Trust is currently generating about -0.18 per unit of risk. If you would invest 6,242 in Nuveen Winslow Large Cap on August 26, 2024 and sell it today you would earn a total of 190.00 from holding Nuveen Winslow Large Cap or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Winslow Large Cap vs. Lord Abbett Trust
Performance |
| Timeline |
| Nuveen Winslow Large |
| Lord Abbett Trust |
Nuveen Winslow and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Winslow and Lord Abbett
The main advantage of trading using opposite Nuveen Winslow and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Winslow 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.| Nuveen Winslow vs. Nuveen Small Cap | Nuveen Winslow vs. Nuveen Real Estate | Nuveen Winslow vs. Nuveen Real Estate | Nuveen Winslow vs. Nuveen Preferred Securities |
| Lord Abbett vs. Nuveen Winslow Large Cap | Lord Abbett vs. Siit Large Cap | Lord Abbett vs. Old Westbury Large | Lord Abbett vs. Aqr Large Cap |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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