Correlation Between Baird Short and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Baird Short 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 Baird Short and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Short Term Bond and Lord Abbett Diversified, you can compare the effects of market volatilities on Baird Short 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 Baird Short with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Short and Lord Abbett.
Diversification Opportunities for Baird Short and Lord Abbett
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baird and Lord is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Baird Short Term Bond 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 Baird Short 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 Baird Short Term Bond 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 Baird Short i.e., Baird Short and Lord Abbett go up and down completely randomly.
Pair Corralation between Baird Short and Lord Abbett
Assuming the 90 days horizon Baird Short is expected to generate 2.54 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Baird Short Term Bond is 5.2 times less risky than Lord Abbett. It trades about 0.23 of its potential returns per unit of risk. Lord Abbett Diversified is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,692 in Lord Abbett Diversified on September 9, 2025 and sell it today you would earn a total of 36.00 from holding Lord Abbett Diversified or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Short Term Bond vs. Lord Abbett Diversified
Performance |
| Timeline |
| Baird Short Term |
| Lord Abbett Diversified |
Baird Short and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Short and Lord Abbett
The main advantage of trading using opposite Baird Short and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Short 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.| Baird Short vs. Wells Fargo Advantage | Baird Short vs. Fidelity Investment Grade | Baird Short vs. Fuller Thaler Behavioral | Baird Short vs. Vanguard Gnma Fund |
| Lord Abbett vs. Guidepath Conservative Income | Lord Abbett vs. Columbia Diversified Equity | Lord Abbett vs. Wilmington Diversified Income | Lord Abbett vs. Aqr Diversified Arbitrage |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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