Correlation Between Jhancock Global and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Jhancock Global 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 Jhancock Global and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Global Equity and Lord Abbett Inv, you can compare the effects of market volatilities on Jhancock Global 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 Jhancock Global with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Lord Abbett.
Diversification Opportunities for Jhancock Global and Lord Abbett
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jhancock and Lord is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Lord Abbett Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inv and Jhancock Global 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 Jhancock Global Equity 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 Inv has no effect on the direction of Jhancock Global i.e., Jhancock Global and Lord Abbett go up and down completely randomly.
Pair Corralation between Jhancock Global and Lord Abbett
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 4.82 times more return on investment than Lord Abbett. However, Jhancock Global is 4.82 times more volatile than Lord Abbett Inv. It trades about 0.18 of its potential returns per unit of risk. Lord Abbett Inv is currently generating about 0.23 per unit of risk. If you would invest 1,224 in Jhancock Global Equity on May 29, 2025 and sell it today you would earn a total of 80.00 from holding Jhancock Global Equity or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Lord Abbett Inv
Performance |
| Timeline |
| Jhancock Global Equity |
| Lord Abbett Inv |
Jhancock Global and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Lord Abbett
The main advantage of trading using opposite Jhancock Global and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global 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.| Jhancock Global vs. Pace Municipal Fixed | Jhancock Global vs. Lord Abbett Intermediate | Jhancock Global vs. Aig Government Money | Jhancock Global vs. Gurtin California Muni |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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