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 Inflation, 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
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aqr and Lord is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Lord Abbett Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inflation 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 Inflation 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 4.46 times more return on investment than Lord Abbett. However, Aqr Long is 4.46 times more volatile than Lord Abbett Inflation. It trades about 0.18 of its potential returns per unit of risk. Lord Abbett Inflation is currently generating about 0.0 per unit of risk. If you would invest 1,637 in Aqr Long Short Equity on September 14, 2024 and sell it today you would earn a total of 31.00 from holding Aqr Long Short Equity or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Lord Abbett Inflation
Performance |
| Timeline |
| Aqr Long Short |
| Lord Abbett Inflation |
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. Wilmington Trust Retirement | Aqr Long vs. Fidelity Managed Retirement | Aqr Long vs. Columbia Moderate Growth | Aqr Long vs. Blackrock Moderate Prepared |
| Lord Abbett vs. Aqr Long Short Equity | Lord Abbett vs. Shelton Emerging Markets | Lord Abbett vs. Ashmore Emerging Markets | Lord Abbett vs. Transamerica Emerging Markets |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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