Correlation Between Aqr Managed and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Aqr Managed 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 Managed 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 Managed Futures and Lord Abbett Vertible, you can compare the effects of market volatilities on Aqr Managed 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 Managed with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Lord Abbett.
Diversification Opportunities for Aqr Managed and Lord Abbett
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Lord is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures 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 Aqr Managed 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 Managed Futures 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 Aqr Managed i.e., Aqr Managed and Lord Abbett go up and down completely randomly.
Pair Corralation between Aqr Managed and Lord Abbett
Assuming the 90 days horizon Aqr Managed is expected to generate 2.64 times less return on investment than Lord Abbett. In addition to that, Aqr Managed is 1.54 times more volatile than Lord Abbett Vertible. It trades about 0.17 of its total potential returns per unit of risk. Lord Abbett Vertible is currently generating about 0.7 per unit of volatility. If you would invest 1,353 in Lord Abbett Vertible on September 3, 2024 and sell it today you would earn a total of 108.00 from holding Lord Abbett Vertible or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Lord Abbett Vertible
Performance |
| Timeline |
| Aqr Managed Futures |
| Lord Abbett Vertible |
Aqr Managed and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Lord Abbett
The main advantage of trading using opposite Aqr Managed and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed 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 Managed vs. The Hartford Equity | Aqr Managed vs. Locorr Dynamic Equity | Aqr Managed vs. Jpmorgan Equity Income | Aqr Managed vs. Multimedia Portfolio Multimedia |
| Lord Abbett vs. Calvert Short Duration | Lord Abbett vs. Limited Term Tax | Lord Abbett vs. Goldman Sachs Short | Lord Abbett vs. Maryland Short Term Tax Free |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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