Correlation Between Lord Abbett and Low Duration
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Low Duration 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 Lord Abbett and Low Duration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Convertible and Low Duration Bond Institutional, you can compare the effects of market volatilities on Lord Abbett and Low Duration 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 Lord Abbett with a short position of Low Duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Low Duration.
Diversification Opportunities for Lord Abbett and Low Duration
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lord and Low is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Low Duration Bond Institutiona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Low Duration Bond and Lord Abbett 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 Lord Abbett Convertible are associated (or correlated) with Low Duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Low Duration Bond has no effect on the direction of Lord Abbett i.e., Lord Abbett and Low Duration go up and down completely randomly.
Pair Corralation between Lord Abbett and Low Duration
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 5.46 times more return on investment than Low Duration. However, Lord Abbett is 5.46 times more volatile than Low Duration Bond Institutional. It trades about 0.23 of its potential returns per unit of risk. Low Duration Bond Institutional is currently generating about 0.34 per unit of risk. If you would invest 1,509 in Lord Abbett Convertible on June 10, 2025 and sell it today you would earn a total of 113.00 from holding Lord Abbett Convertible or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Low Duration Bond Institutiona
Performance |
| Timeline |
| Lord Abbett Convertible |
| Low Duration Bond |
Lord Abbett and Low Duration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Low Duration
The main advantage of trading using opposite Lord Abbett and Low Duration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Low Duration 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 Low Duration will offset losses from the drop in Low Duration's long position.| Lord Abbett vs. Growth Fund C | Lord Abbett vs. Aambahl Gaynor Income | Lord Abbett vs. Lebenthal Lisanti Small | Lord Abbett vs. L Abbett Growth |
| Low Duration vs. Growth Allocation Fund | Low Duration vs. Defensive Market Strategies | Low Duration vs. Defensive Market Strategies | Low Duration vs. Value Equity Institutional |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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