Correlation Between Lord Abbett and Pgim Securitized
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Pgim Securitized 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 Pgim Securitized 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 Pgim Securitized Credit, you can compare the effects of market volatilities on Lord Abbett and Pgim Securitized 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 Pgim Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Pgim Securitized.
Diversification Opportunities for Lord Abbett and Pgim Securitized
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Pgim is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit 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 Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Lord Abbett i.e., Lord Abbett and Pgim Securitized go up and down completely randomly.
Pair Corralation between Lord Abbett and Pgim Securitized
Assuming the 90 days horizon Lord Abbett Short is expected to generate 2.04 times more return on investment than Pgim Securitized. However, Lord Abbett is 2.04 times more volatile than Pgim Securitized Credit. It trades about 0.41 of its potential returns per unit of risk. Pgim Securitized Credit is currently generating about 0.32 per unit of risk. If you would invest 920.00 in Lord Abbett Short on April 21, 2025 and sell it today you would earn a total of 58.00 from holding Lord Abbett Short or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Pgim Securitized Credit
Performance |
| Timeline |
| Lord Abbett Short |
| Pgim Securitized Credit |
Lord Abbett and Pgim Securitized Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Pgim Securitized
The main advantage of trading using opposite Lord Abbett and Pgim Securitized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Pgim Securitized 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 Pgim Securitized will offset losses from the drop in Pgim Securitized'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 |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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