Correlation Between Oakmark Equity and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Oakmark Equity 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 Oakmark Equity and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Equity And and Lord Abbett Mid, you can compare the effects of market volatilities on Oakmark Equity 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 Oakmark Equity with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Equity and Lord Abbett.
Diversification Opportunities for Oakmark Equity and Lord Abbett
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oakmark and Lord is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Equity And and Lord Abbett Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Mid and Oakmark Equity 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 Oakmark Equity And 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 Mid has no effect on the direction of Oakmark Equity i.e., Oakmark Equity and Lord Abbett go up and down completely randomly.
Pair Corralation between Oakmark Equity and Lord Abbett
Assuming the 90 days horizon Oakmark Equity is expected to generate 1.54 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Oakmark Equity And is 1.8 times less risky than Lord Abbett. It trades about 0.35 of its potential returns per unit of risk. Lord Abbett Mid is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,698 in Lord Abbett Mid on September 1, 2024 and sell it today you would earn a total of 251.00 from holding Lord Abbett Mid or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oakmark Equity And vs. Lord Abbett Mid
Performance |
| Timeline |
| Oakmark Equity And |
| Lord Abbett Mid |
Oakmark Equity and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Equity and Lord Abbett
The main advantage of trading using opposite Oakmark Equity and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Equity 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.| Oakmark Equity vs. Oakmark Global Fund | Oakmark Equity vs. Oakmark International Fund | Oakmark Equity vs. Oakmark Select Fund | Oakmark Equity vs. T Rowe Price |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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