Correlation Between Western Assets and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Western Assets 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 Western Assets and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Assets Emerging and Lord Abbett High, you can compare the effects of market volatilities on Western Assets 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 Western Assets with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Assets and Lord Abbett.
Diversification Opportunities for Western Assets and Lord Abbett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Emerging and Lord Abbett High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett High and Western Assets 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 Western Assets Emerging 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 High has no effect on the direction of Western Assets i.e., Western Assets and Lord Abbett go up and down completely randomly.
Pair Corralation between Western Assets and Lord Abbett
If you would invest 948.00 in Western Assets Emerging on September 4, 2024 and sell it today you would earn a total of 131.00 from holding Western Assets Emerging or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Assets Emerging vs. Lord Abbett High
Performance |
| Timeline |
| Western Assets Emerging |
| Lord Abbett High |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Assets and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Assets and Lord Abbett
The main advantage of trading using opposite Western Assets and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Assets 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.| Western Assets vs. Heartland Value Plus | Western Assets vs. Royce Opportunity Fund | Western Assets vs. Royce Opportunity Fund | Western Assets vs. Queens Road Small |
| Lord Abbett vs. Shelton Emerging Markets | Lord Abbett vs. Locorr Market Trend | Lord Abbett vs. Jpmorgan Emerging Markets | Lord Abbett vs. Western Assets Emerging |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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