Correlation Between Navigator Tactical and Lord Abbett

Can any of the company-specific risk be diversified away by investing in both Navigator Tactical 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 Navigator Tactical and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Navigator Tactical Fixed and Lord Abbett Short, you can compare the effects of market volatilities on Navigator Tactical 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 Navigator Tactical with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Tactical and Lord Abbett.

Diversification Opportunities for Navigator Tactical and Lord Abbett

0.51

Correlation Coefficient

Navigator Tactical  Lord Abbett

Very weak diversification

The 3 months correlation between Navigator and Lord is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Tactical Fixed and Lord Abbett Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Short and Navigator Tactical 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 Navigator Tactical Fixed 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 Short has no effect on the direction of Navigator Tactical i.e., Navigator Tactical and Lord Abbett go up and down completely randomly.

Pair Corralation between Navigator Tactical and Lord Abbett

Assuming the 90 days horizon Navigator Tactical is expected to generate 1.4 times less return on investment than Lord Abbett. In addition to that, Navigator Tactical is 1.17 times more volatile than Lord Abbett Short. It trades about 0.09 of its total potential returns per unit of risk. Lord Abbett Short is currently generating about 0.15 per unit of volatility. If you would invest  382.00  in Lord Abbett Short on December 27, 2024 and sell it today you would earn a total of  6.00  from holding Lord Abbett Short or generate 1.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Navigator Tactical Fixed  vs.  Lord Abbett Short

Navigator Tactical Fixed

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Navigator Tactical Fixed are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Navigator Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lord Abbett Short

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Short are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pair Trading with Navigator Tactical and Lord Abbett

The main advantage of trading using opposite Navigator Tactical and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Tactical 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 idea behind Navigator Tactical Fixed and Lord Abbett Short 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.