Correlation Between Saat Defensive and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Saat Defensive 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 Saat Defensive and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Defensive Strategy and Lord Abbett Diversified, you can compare the effects of market volatilities on Saat Defensive 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 Saat Defensive with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Lord Abbett.
Diversification Opportunities for Saat Defensive and Lord Abbett
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Lord is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy 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 Saat Defensive 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 Saat Defensive Strategy 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 Saat Defensive i.e., Saat Defensive and Lord Abbett go up and down completely randomly.
Pair Corralation between Saat Defensive and Lord Abbett
Assuming the 90 days horizon Saat Defensive is expected to generate 2.23 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Saat Defensive Strategy is 2.73 times less risky than Lord Abbett. It trades about 0.17 of its potential returns per unit of risk. Lord Abbett Diversified is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,445 in Lord Abbett Diversified on November 9, 2024 and sell it today you would earn a total of 201.00 from holding Lord Abbett Diversified or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Lord Abbett Diversified
Performance |
| Timeline |
| Saat Defensive Strategy |
| Lord Abbett Diversified |
Saat Defensive and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Lord Abbett
The main advantage of trading using opposite Saat Defensive and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive 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.| Saat Defensive vs. Voya Government Money | Saat Defensive vs. Fidelity Advisor Financial | Saat Defensive vs. Blackstone Secured Lending | Saat Defensive vs. Schwab Government Money |
| Lord Abbett vs. Lord Abbett Intermediate | Lord Abbett vs. Lord Abbett Bond | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |