Correlation Between Mfs Mid and Lord Abbett

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Can any of the company-specific risk be diversified away by investing in both Mfs Mid 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 Mfs Mid and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Mid Cap and Lord Abbett Intermediate, you can compare the effects of market volatilities on Mfs Mid 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 Mfs Mid with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Mid and Lord Abbett.

Diversification Opportunities for Mfs Mid and Lord Abbett

MfsLordDiversified AwayMfsLordDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Mfs and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Mid Cap and Lord Abbett Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Intermediate and Mfs Mid 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 Mfs Mid Cap 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 Intermediate has no effect on the direction of Mfs Mid i.e., Mfs Mid and Lord Abbett go up and down completely randomly.

Pair Corralation between Mfs Mid and Lord Abbett

If you would invest  1,021  in Lord Abbett Intermediate on November 24, 2024 and sell it today you would earn a total of  4.00  from holding Lord Abbett Intermediate or generate 0.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.69%
ValuesDaily Returns

Mfs Mid Cap  vs.  Lord Abbett Intermediate

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1.5-1.0-0.50.00.5
JavaScript chart by amCharts 3.21.15OTCBX LOISX
       Timeline  
Mfs Mid Cap 

Risk-Adjusted Performance

Very Weak

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

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Intermediate are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lord Abbett is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10.110.1510.210.2510.3

Mfs Mid and Lord Abbett Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.8-2.1-1.39-0.690.00.61.211.822.43 2468
JavaScript chart by amCharts 3.21.15OTCBX LOISX
       Returns  

Pair Trading with Mfs Mid and Lord Abbett

The main advantage of trading using opposite Mfs Mid and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Mid 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 Mfs Mid Cap and Lord Abbett Intermediate 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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