Correlation Between Lord Abbett and Short-intermediate
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Short-intermediate 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 Short-intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Short and Short Intermediate Bond Fund, you can compare the effects of market volatilities on Lord Abbett and Short-intermediate 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 Short-intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Short-intermediate.
Diversification Opportunities for Lord Abbett and Short-intermediate
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Short-intermediate is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate 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 Short are associated (or correlated) with Short-intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Lord Abbett i.e., Lord Abbett and Short-intermediate go up and down completely randomly.
Pair Corralation between Lord Abbett and Short-intermediate
Assuming the 90 days horizon Lord Abbett Short is expected to generate 1.37 times more return on investment than Short-intermediate. However, Lord Abbett is 1.37 times more volatile than Short Intermediate Bond Fund. It trades about -0.13 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about -0.22 per unit of risk. If you would invest 389.00 in Lord Abbett Short on April 29, 2025 and sell it today you would lose (1.00) from holding Lord Abbett Short or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| Lord Abbett Short |
| Short Intermediate Bond |
Lord Abbett and Short-intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Short-intermediate
The main advantage of trading using opposite Lord Abbett and Short-intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Short-intermediate 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 Short-intermediate will offset losses from the drop in Short-intermediate's long position.| Lord Abbett vs. Neuberger Berman Income | Lord Abbett vs. Lord Abbett Short | Lord Abbett vs. Transamerica High Yield | Lord Abbett vs. Barings High Yield |
| Short-intermediate vs. Small Pany Fund | Short-intermediate vs. Balanced Fund Institutional | Short-intermediate vs. Income Fund Institutional | Short-intermediate vs. Credit Suisse Floating |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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