Correlation Between Lord Abbett and Shenkman Floating
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Shenkman Floating 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 Shenkman Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Inv and Shenkman Floating Rate, you can compare the effects of market volatilities on Lord Abbett and Shenkman Floating 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 Shenkman Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Shenkman Floating.
Diversification Opportunities for Lord Abbett and Shenkman Floating
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Shenkman is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inv and Shenkman Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenkman Floating Rate 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 Inv are associated (or correlated) with Shenkman Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenkman Floating Rate has no effect on the direction of Lord Abbett i.e., Lord Abbett and Shenkman Floating go up and down completely randomly.
Pair Corralation between Lord Abbett and Shenkman Floating
Assuming the 90 days horizon Lord Abbett Inv is expected to generate 1.12 times more return on investment than Shenkman Floating. However, Lord Abbett is 1.12 times more volatile than Shenkman Floating Rate. It trades about 0.25 of its potential returns per unit of risk. Shenkman Floating Rate is currently generating about 0.24 per unit of risk. If you would invest 805.00 in Lord Abbett Inv on September 14, 2024 and sell it today you would earn a total of 14.00 from holding Lord Abbett Inv or generate 1.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lord Abbett Inv vs. Shenkman Floating Rate
Performance |
Timeline |
Lord Abbett Inv |
Shenkman Floating Rate |
Lord Abbett and Shenkman Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lord Abbett and Shenkman Floating
The main advantage of trading using opposite Lord Abbett and Shenkman Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Shenkman Floating 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 Shenkman Floating will offset losses from the drop in Shenkman Floating's long position.Lord Abbett vs. Balanced Fund Investor | Lord Abbett vs. Commonwealth Global Fund | Lord Abbett vs. Rbb Fund | Lord Abbett vs. Eic Value Fund |
Shenkman Floating vs. Goldman Sachs Financial | Shenkman Floating vs. Angel Oak Financial | Shenkman Floating vs. Davis Financial Fund | Shenkman Floating vs. Vanguard Financials Index |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |