Correlation Between XRP and Lord Abbett

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

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

Diversification Opportunities for XRP and Lord Abbett

-0.01

Correlation Coefficient

XRP  Lord Abbett

Good diversification

The 3 months correlation between XRP and Lord is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Lord Abbett Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Bond and XRP 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 XRP 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 Bond has no effect on the direction of XRP i.e., XRP and Lord Abbett go up and down completely randomly.

Pair Corralation between XRP and Lord Abbett

Assuming the 90 days trading horizon XRP is expected to generate 21.84 times more return on investment than Lord Abbett. However, XRP is 21.84 times more volatile than Lord Abbett Bond. It trades about 0.04 of its potential returns per unit of risk. Lord Abbett Bond is currently generating about 0.08 per unit of risk. If you would invest  228.00  in XRP on December 19, 2024 and sell it today you would earn a total of  11.00  from holding XRP or generate 4.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

XRP  vs.  Lord Abbett Bond

XRP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in XRP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, XRP exhibited solid returns over the last few months and may actually be approaching a breakup point.

Lord Abbett Bond

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Bond are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and 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 XRP and Lord Abbett

The main advantage of trading using opposite XRP and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP 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 XRP and Lord Abbett Bond 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..