Correlation Between Angel Oak and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Lord Abbett Vertible, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Lord Abbett.
Diversification Opportunities for Angel Oak and Lord Abbett
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Lord is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial 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 Angel Oak 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 Angel Oak Financial 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 Angel Oak i.e., Angel Oak and Lord Abbett go up and down completely randomly.
Pair Corralation between Angel Oak and Lord Abbett
Assuming the 90 days horizon Angel Oak is expected to generate 5.27 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Angel Oak Financial is 2.69 times less risky than Lord Abbett. It trades about 0.04 of its potential returns per unit of risk. Lord Abbett Vertible is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,298 in Lord Abbett Vertible on October 18, 2024 and sell it today you would earn a total of 143.00 from holding Lord Abbett Vertible or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Lord Abbett Vertible
Performance |
| Timeline |
| Angel Oak Financial |
| Lord Abbett Vertible |
Angel Oak and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Lord Abbett
The main advantage of trading using opposite Angel Oak and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Eic Value Fund | Angel Oak vs. Eip Growth And | Angel Oak vs. Rational Dividend Capture | Angel Oak vs. Kirr Marbach Partners |
| Lord Abbett vs. Allianzgi Convertible Income | Lord Abbett vs. Mainstay Vertible Fund | Lord Abbett vs. Invesco Vertible Securities | Lord Abbett vs. Gabelli Convertible And |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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