Correlation Between Scout Mid and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Scout Mid 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 Scout Mid and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout Mid Cap and Lord Abbett Inflation, you can compare the effects of market volatilities on Scout Mid 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 Scout Mid with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Mid and Lord Abbett.
Diversification Opportunities for Scout Mid and Lord Abbett
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scout and Lord is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Scout Mid Cap 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 Scout Mid 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 Scout Mid Cap 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 Scout Mid i.e., Scout Mid and Lord Abbett go up and down completely randomly.
Pair Corralation between Scout Mid and Lord Abbett
Assuming the 90 days horizon Scout Mid Cap is expected to generate 5.97 times more return on investment than Lord Abbett. However, Scout Mid is 5.97 times more volatile than Lord Abbett Inflation. It trades about 0.16 of its potential returns per unit of risk. Lord Abbett Inflation is currently generating about 0.11 per unit of risk. If you would invest 2,399 in Scout Mid Cap on September 3, 2024 and sell it today you would earn a total of 468.00 from holding Scout Mid Cap or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scout Mid Cap vs. Lord Abbett Inflation
Performance |
| Timeline |
| Scout Mid Cap |
| Lord Abbett Inflation |
Scout Mid and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout Mid and Lord Abbett
The main advantage of trading using opposite Scout Mid and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Mid 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.| Scout Mid vs. Gmo High Yield | Scout Mid vs. Transamerica Funds | Scout Mid vs. Bbh Intermediate Municipal | Scout Mid vs. Ab Bond Inflation |
| Lord Abbett vs. Health Biotchnology Portfolio | Lord Abbett vs. Invesco Global Health | Lord Abbett vs. Health Biotchnology Portfolio | Lord Abbett vs. Baillie Gifford Health |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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