Correlation Between Aqr Global and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Aqr Global 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 Aqr Global and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Global Macro and Lord Abbett Diversified, you can compare the effects of market volatilities on Aqr Global 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 Aqr Global with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Lord Abbett.
Diversification Opportunities for Aqr Global and Lord Abbett
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Lord is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Lord Abbett Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Diversified and Aqr Global 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 Aqr Global Macro 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 Diversified has no effect on the direction of Aqr Global i.e., Aqr Global and Lord Abbett go up and down completely randomly.
Pair Corralation between Aqr Global and Lord Abbett
Assuming the 90 days horizon Aqr Global is expected to generate 15.82 times less return on investment than Lord Abbett. In addition to that, Aqr Global is 1.66 times more volatile than Lord Abbett Diversified. It trades about 0.0 of its total potential returns per unit of risk. Lord Abbett Diversified is currently generating about 0.1 per unit of volatility. If you would invest 1,380 in Lord Abbett Diversified on October 25, 2024 and sell it today you would earn a total of 253.00 from holding Lord Abbett Diversified or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Lord Abbett Diversified
Performance |
| Timeline |
| Aqr Global Macro |
| Lord Abbett Diversified |
Aqr Global and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Lord Abbett
The main advantage of trading using opposite Aqr Global and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global 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.| Aqr Global vs. Tiaa Cref Lifestyle Servative | Aqr Global vs. Transamerica Asset Allocation | Aqr Global vs. Delaware Limited Term Diversified | Aqr Global vs. Conservative Balanced Allocation |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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