Correlation Between Lord Abbett and Short Oil
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Short Oil 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 Short Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and Short Oil Gas, you can compare the effects of market volatilities on Lord Abbett and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Short Oil.
Diversification Opportunities for Lord Abbett and Short Oil
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lord and Short is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Diversified are associated (or correlated) with Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Lord Abbett i.e., Lord Abbett and Short Oil go up and down completely randomly.
Pair Corralation between Lord Abbett and Short Oil
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 0.35 times more return on investment than Short Oil. However, Lord Abbett Diversified is 2.87 times less risky than Short Oil. It trades about 0.02 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.05 per unit of risk. If you would invest 1,613 in Lord Abbett Diversified on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Lord Abbett Diversified or generate 0.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lord Abbett Diversified vs. Short Oil Gas
Performance |
Timeline |
Lord Abbett Diversified |
Short Oil Gas |
Lord Abbett and Short Oil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lord Abbett and Short Oil
The main advantage of trading using opposite Lord Abbett and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.Lord Abbett vs. Huber Capital Diversified | ||
Lord Abbett vs. Tax Free Conservative Income | ||
Lord Abbett vs. Tiaa Cref Lifestyle Conservative | ||
Lord Abbett vs. Delaware Limited Term Diversified |
Short Oil vs. Commodities Strategy Fund | ||
Short Oil vs. T Rowe Price | ||
Short Oil vs. Tax Managed Large Cap | ||
Short Oil vs. Predex Funds |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
CEOs Directory Screen CEOs from public companies around the world | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Stocks Directory Find actively traded stocks across global markets |