Correlation Between Siit Equity and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Siit Equity 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 Siit Equity and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Equity Factor and Lord Abbett Focused, you can compare the effects of market volatilities on Siit Equity 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 Siit Equity with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Equity and Lord Abbett.
Diversification Opportunities for Siit Equity and Lord Abbett
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Lord is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Siit Equity Factor and Lord Abbett Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Focused and Siit Equity 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 Siit Equity Factor 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 Focused has no effect on the direction of Siit Equity i.e., Siit Equity and Lord Abbett go up and down completely randomly.
Pair Corralation between Siit Equity and Lord Abbett
Assuming the 90 days horizon Siit Equity Factor is expected to generate 0.62 times more return on investment than Lord Abbett. However, Siit Equity Factor is 1.61 times less risky than Lord Abbett. It trades about 0.14 of its potential returns per unit of risk. Lord Abbett Focused is currently generating about 0.05 per unit of risk. If you would invest 1,468 in Siit Equity Factor on November 7, 2024 and sell it today you would earn a total of 28.00 from holding Siit Equity Factor or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Equity Factor vs. Lord Abbett Focused
Performance |
| Timeline |
| Siit Equity Factor |
| Lord Abbett Focused |
Siit Equity and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Equity and Lord Abbett
The main advantage of trading using opposite Siit Equity and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Equity 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.| Siit Equity vs. Msift High Yield | Siit Equity vs. Buffalo High Yield | Siit Equity vs. Simt High Yield | Siit Equity vs. Siit High Yield |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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