Correlation Between Old Westbury and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Short Term and Lord Abbett Vertible, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Lord Abbett.
Diversification Opportunities for Old Westbury and Lord Abbett
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Old and LORD is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Lord Abbett Vertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Vertible and Old Westbury 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 Old Westbury Short Term 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 Vertible has no effect on the direction of Old Westbury i.e., Old Westbury and Lord Abbett go up and down completely randomly.
Pair Corralation between Old Westbury and Lord Abbett
Assuming the 90 days horizon Old Westbury is expected to generate 2.25 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Old Westbury Short Term is 4.94 times less risky than Lord Abbett. It trades about 0.16 of its potential returns per unit of risk. Lord Abbett Vertible is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,199 in Lord Abbett Vertible on August 26, 2024 and sell it today you would earn a total of 261.00 from holding Lord Abbett Vertible or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.63% |
| Values | Daily Returns |
Old Westbury Short Term vs. Lord Abbett Vertible
Performance |
| Timeline |
| Old Westbury Short |
| Lord Abbett Vertible |
Old Westbury and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Lord Abbett
The main advantage of trading using opposite Old Westbury and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Pace International Emerging | Old Westbury vs. Barings Emerging Markets | Old Westbury vs. Rbc Bluebay Emerging | Old Westbury vs. Western Assets Emerging |
| Lord Abbett vs. Short Intermediate Bond Fund | Lord Abbett vs. Vanguard Institutional Short Term | Lord Abbett vs. Old Westbury Short Term | Lord Abbett vs. Barings Active Short |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |