Correlation Between Lord Abbett and Deutsche Short-term
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Deutsche Short-term 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 Deutsche Short-term 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 Deutsche Short Term Municipal, you can compare the effects of market volatilities on Lord Abbett and Deutsche Short-term 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 Deutsche Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Deutsche Short-term.
Diversification Opportunities for Lord Abbett and Deutsche Short-term
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Deutsche is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Deutsche Short Term Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Short Term 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 Deutsche Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Short Term has no effect on the direction of Lord Abbett i.e., Lord Abbett and Deutsche Short-term go up and down completely randomly.
Pair Corralation between Lord Abbett and Deutsche Short-term
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 4.3 times more return on investment than Deutsche Short-term. However, Lord Abbett is 4.3 times more volatile than Deutsche Short Term Municipal. It trades about 0.1 of its potential returns per unit of risk. Deutsche Short Term Municipal is currently generating about 0.12 per unit of risk. If you would invest 1,745 in Lord Abbett Diversified on August 27, 2025 and sell it today you would earn a total of 33.00 from holding Lord Abbett Diversified or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Deutsche Short Term Municipal
Performance |
| Timeline |
| Lord Abbett Diversified |
| Deutsche Short Term |
Lord Abbett and Deutsche Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Deutsche Short-term
The main advantage of trading using opposite Lord Abbett and Deutsche Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Deutsche Short-term 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 Deutsche Short-term will offset losses from the drop in Deutsche Short-term's long position.| Lord Abbett vs. Gmo High Yield | Lord Abbett vs. Alpine High Yield | Lord Abbett vs. Nuveen High Yield | Lord Abbett vs. Blackrock High Yield |
| Deutsche Short-term vs. Elfun Diversified Fund | Deutsche Short-term vs. Aqr Diversified Arbitrage | Deutsche Short-term vs. Massmutual Premier Diversified | Deutsche Short-term vs. Lord Abbett Diversified |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |