Correlation Between Pro Blend and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Pro Blend and Lord Abbett 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 Pro Blend and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Extended Term and Lord Abbett Convertible, you can compare the effects of market volatilities on Pro Blend and Lord Abbett 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 Pro Blend with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Lord Abbett.
Diversification Opportunities for Pro Blend and Lord Abbett
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pro and Lord is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Extended Term and Lord Abbett Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Convertible and Pro Blend 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 Pro Blend Extended Term are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Convertible has no effect on the direction of Pro Blend i.e., Pro Blend and Lord Abbett go up and down completely randomly.
Pair Corralation between Pro Blend and Lord Abbett
Assuming the 90 days horizon Pro Blend is expected to generate 5.0 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Pro Blend Extended Term is 1.97 times less risky than Lord Abbett. It trades about 0.04 of its potential returns per unit of risk. Lord Abbett Convertible is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Lord Abbett Convertible on August 27, 2025 and sell it today you would earn a total of 99.00 from holding Lord Abbett Convertible or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Pro Blend Extended Term vs. Lord Abbett Convertible
Performance |
| Timeline |
| Pro Blend Extended |
| Lord Abbett Convertible |
Pro Blend and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Lord Abbett
The main advantage of trading using opposite Pro Blend and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Pro Blend vs. Mfs Technology Fund | Pro Blend vs. Dreyfus Technology Growth | Pro Blend vs. Fidelity Advisor Technology | Pro Blend vs. Franklin Biotechnology Discovery |
| Lord Abbett vs. Ultra Short Fixed Income | Lord Abbett vs. Abr Dynamic Blend | Lord Abbett vs. Dreyfusstandish Global Fixed | Lord Abbett vs. Summit Global Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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