Correlation Between Lord Abbett and Midcap Fund
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Midcap Fund 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 Midcap Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inflation and Midcap Fund Class, you can compare the effects of market volatilities on Lord Abbett and Midcap Fund 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 Midcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Midcap Fund.
Diversification Opportunities for Lord Abbett and Midcap Fund
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Midcap is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inflation and Midcap Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midcap Fund Class 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 Inflation are associated (or correlated) with Midcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midcap Fund Class has no effect on the direction of Lord Abbett i.e., Lord Abbett and Midcap Fund go up and down completely randomly.
Pair Corralation between Lord Abbett and Midcap Fund
Assuming the 90 days horizon Lord Abbett is expected to generate 1.23 times less return on investment than Midcap Fund. But when comparing it to its historical volatility, Lord Abbett Inflation is 5.69 times less risky than Midcap Fund. It trades about 0.33 of its potential returns per unit of risk. Midcap Fund Class is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,619 in Midcap Fund Class on June 12, 2025 and sell it today you would earn a total of 120.00 from holding Midcap Fund Class or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Inflation vs. Midcap Fund Class
Performance |
| Timeline |
| Lord Abbett Inflation |
| Midcap Fund Class |
Lord Abbett and Midcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Midcap Fund
The main advantage of trading using opposite Lord Abbett and Midcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Midcap Fund 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 Midcap Fund will offset losses from the drop in Midcap Fund's long position.| Lord Abbett vs. Vanguard Short Term Inflation Protected | Lord Abbett vs. Vanguard Short Term Inflation Protected | Lord Abbett vs. T Rowe Price | Lord Abbett vs. T Rowe Price |
| Midcap Fund vs. Manning Napier Diversified | Midcap Fund vs. Conservative Allocation Fund | Midcap Fund vs. Evaluator Conservative Rms | Midcap Fund vs. Federated Hermes Conservative |
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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