Correlation Between The National and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both The National 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 The National and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The National Tax Free and Lord Abbett Inv, you can compare the effects of market volatilities on The National 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 The National with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of The National and Lord Abbett.
Diversification Opportunities for The National and Lord Abbett
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between The and Lord is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding The National Tax Free and Lord Abbett Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inv and The National 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 The National Tax Free 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 Inv has no effect on the direction of The National i.e., The National and Lord Abbett go up and down completely randomly.
Pair Corralation between The National and Lord Abbett
Assuming the 90 days horizon The National Tax Free is expected to under-perform the Lord Abbett. In addition to that, The National is 1.29 times more volatile than Lord Abbett Inv. It trades about -0.02 of its total potential returns per unit of risk. Lord Abbett Inv is currently generating about 0.07 per unit of volatility. If you would invest 803.00 in Lord Abbett Inv on December 28, 2024 and sell it today you would earn a total of 5.00 from holding Lord Abbett Inv or generate 0.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
The National Tax Free vs. Lord Abbett Inv
Performance |
Timeline |
National Tax |
Lord Abbett Inv |
The National and Lord Abbett Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with The National and Lord Abbett
The main advantage of trading using opposite The National and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The National 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.The National vs. The Missouri Tax Free | The National vs. The Bond Fund | The National vs. High Yield Municipal Fund | The National vs. Fidelity Intermediate Municipal |
Lord Abbett vs. Ambrus Core Bond | Lord Abbett vs. Multisector Bond Sma | Lord Abbett vs. Federated Municipal Ultrashort | Lord Abbett vs. Artisan High Income |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |