Correlation Between Lord Abbett and Prudential Real
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Prudential Real 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 Prudential Real 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 Prudential Real Estate, you can compare the effects of market volatilities on Lord Abbett and Prudential Real 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 Prudential Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Prudential Real.
Diversification Opportunities for Lord Abbett and Prudential Real
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lord and Prudential is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Convertible and Prudential Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Real Estate 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 Prudential Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Real Estate has no effect on the direction of Lord Abbett i.e., Lord Abbett and Prudential Real go up and down completely randomly.
Pair Corralation between Lord Abbett and Prudential Real
Assuming the 90 days horizon Lord Abbett Convertible is expected to generate 0.58 times more return on investment than Prudential Real. However, Lord Abbett Convertible is 1.73 times less risky than Prudential Real. It trades about 0.29 of its potential returns per unit of risk. Prudential Real Estate is currently generating about 0.02 per unit of risk. If you would invest 1,471 in Lord Abbett Convertible on May 29, 2025 and sell it today you would earn a total of 136.00 from holding Lord Abbett Convertible or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Convertible vs. Prudential Real Estate
Performance |
| Timeline |
| Lord Abbett Convertible |
| Prudential Real Estate |
Lord Abbett and Prudential Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Prudential Real
The main advantage of trading using opposite Lord Abbett and Prudential Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Prudential Real 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 Prudential Real will offset losses from the drop in Prudential Real's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| Prudential Real vs. Mutual Of America | Prudential Real vs. American Century Etf | Prudential Real vs. Goldman Sachs Small | Prudential Real vs. Northern Small Cap |
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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