Correlation Between Lord Abbett and Ivy Managed

Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Ivy Managed 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 Ivy Managed 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 Ivy Managed International, you can compare the effects of market volatilities on Lord Abbett and Ivy Managed 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 Ivy Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Ivy Managed.

Diversification Opportunities for Lord Abbett and Ivy Managed

0.0

Correlation Coefficient

Lord Abbett  Ivy Managed

Pay attention - limited upside

The 3 months correlation between Lord and Ivy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Ivy Managed International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Managed International 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 Ivy Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Managed International has no effect on the direction of Lord Abbett i.e., Lord Abbett and Ivy Managed go up and down completely randomly.

Pair Corralation between Lord Abbett and Ivy Managed

If you would invest  377.00  in Lord Abbett Short on September 15, 2024 and sell it today you would earn a total of  11.00  from holding Lord Abbett Short or generate 2.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	20.63%
Values	Daily Returns

Lord Abbett Short  vs.  Ivy Managed International

Lord Abbett Short

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lord Abbett Short has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Lord Abbett is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ivy Managed International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ivy Managed International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ivy Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lord Abbett and Ivy Managed

The main advantage of trading using opposite Lord Abbett and Ivy Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Ivy Managed 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 Ivy Managed will offset losses from the drop in Ivy Managed's long position.

The idea behind Lord Abbett Short and Ivy Managed International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.