Correlation Between Lord Abbett and Moderately Aggressive
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Moderately Aggressive 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 Moderately Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and Moderately Aggressive Balanced, you can compare the effects of market volatilities on Lord Abbett and Moderately Aggressive 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 Moderately Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Moderately Aggressive.
Diversification Opportunities for Lord Abbett and Moderately Aggressive
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Moderately is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Moderately Aggressive Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Aggressive 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 Diversified are associated (or correlated) with Moderately Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Aggressive has no effect on the direction of Lord Abbett i.e., Lord Abbett and Moderately Aggressive go up and down completely randomly.
Pair Corralation between Lord Abbett and Moderately Aggressive
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 0.49 times more return on investment than Moderately Aggressive. However, Lord Abbett Diversified is 2.05 times less risky than Moderately Aggressive. It trades about 0.25 of its potential returns per unit of risk. Moderately Aggressive Balanced is currently generating about 0.1 per unit of risk. If you would invest 1,670 in Lord Abbett Diversified on May 30, 2025 and sell it today you would earn a total of 24.00 from holding Lord Abbett Diversified or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Moderately Aggressive Balanced
Performance |
| Timeline |
| Lord Abbett Diversified |
| Moderately Aggressive |
Lord Abbett and Moderately Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Moderately Aggressive
The main advantage of trading using opposite Lord Abbett and Moderately Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Moderately Aggressive 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 Moderately Aggressive will offset losses from the drop in Moderately Aggressive'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 |
| Moderately Aggressive vs. Mesirow Financial Small | Moderately Aggressive vs. Goldman Sachs Financial | Moderately Aggressive vs. Financial Industries Fund | Moderately Aggressive vs. Putnam Global Financials |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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