Correlation Between Aqr Long and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Aqr Long 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 Long 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 Long Short Equity and Lord Abbett Health, you can compare the effects of market volatilities on Aqr Long 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 Long with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Lord Abbett.
Diversification Opportunities for Aqr Long and Lord Abbett
0.06 | Correlation Coefficient |
Significant 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 Long Short Equity and Lord Abbett Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Health and Aqr Long 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 Long Short Equity 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 Health has no effect on the direction of Aqr Long i.e., Aqr Long and Lord Abbett go up and down completely randomly.
Pair Corralation between Aqr Long and Lord Abbett
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.4 times more return on investment than Lord Abbett. However, Aqr Long Short Equity is 2.52 times less risky than Lord Abbett. It trades about 0.44 of its potential returns per unit of risk. Lord Abbett Health is currently generating about 0.1 per unit of risk. If you would invest 1,579 in Aqr Long Short Equity on September 5, 2024 and sell it today you would earn a total of 67.00 from holding Aqr Long Short Equity or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Lord Abbett Health
Performance |
| Timeline |
| Aqr Long Short |
| Lord Abbett Health |
Aqr Long and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Lord Abbett
The main advantage of trading using opposite Aqr Long and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long 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 Long vs. Aqr Large Cap | Aqr Long vs. Fundamental Large Cap | Aqr Long vs. Pace Large Value | Aqr Long vs. Vela Large Cap |
| Lord Abbett vs. Maryland Tax Free Bond | Lord Abbett vs. Gmo High Yield | Lord Abbett vs. Blrc Sgy Mnp | Lord Abbett vs. Artisan 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |