Correlation Between Lord Abbett and Westwood Short
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Westwood Short 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 Westwood Short 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 Westwood Short Duration, you can compare the effects of market volatilities on Lord Abbett and Westwood Short 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 Westwood Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Westwood Short.
Diversification Opportunities for Lord Abbett and Westwood Short
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lord and Westwood is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Westwood Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwood Short Duration 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 Westwood Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwood Short Duration has no effect on the direction of Lord Abbett i.e., Lord Abbett and Westwood Short go up and down completely randomly.
Pair Corralation between Lord Abbett and Westwood Short
Assuming the 90 days horizon Lord Abbett is expected to generate 1.71 times less return on investment than Westwood Short. But when comparing it to its historical volatility, Lord Abbett Short is 1.41 times less risky than Westwood Short. It trades about 0.26 of its potential returns per unit of risk. Westwood Short Duration is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Westwood Short Duration on June 12, 2025 and sell it today you would earn a total of 47.00 from holding Westwood Short Duration or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Short vs. Westwood Short Duration
Performance |
| Timeline |
| Lord Abbett Short |
| Westwood Short Duration |
Lord Abbett and Westwood Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Westwood Short
The main advantage of trading using opposite Lord Abbett and Westwood Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Westwood Short 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 Westwood Short will offset losses from the drop in Westwood Short's long position.| Lord Abbett vs. Vanguard High Yield Corporate | Lord Abbett vs. Blackrock Hi Yld | Lord Abbett vs. Blackrock Hi Yld | Lord Abbett vs. American High Income |
| Westwood Short vs. Alternative Asset Allocation | Westwood Short vs. Boyd Watterson Limited | Westwood Short vs. Auer Growth Fund | Westwood Short vs. Qs Growth Fund |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |