Correlation Between Short-term Fund and Lord Abbett

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

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

Diversification Opportunities for Short-term Fund and Lord Abbett

0.0

Correlation Coefficient

Short-term Fund  Lord Abbett

Pay attention - limited upside

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

Pair Corralation between Short-term Fund and Lord Abbett

If you would invest  897.00  in Short Term Fund Administrative on March 15, 2024 and sell it today you would earn a total of  67.00  from holding Short Term Fund Administrative or generate 7.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Short Term Fund Administrative  vs.  Lord Abbett Ultra

Short Term Fund

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Short Term Fund Administrative are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Short-term Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lord Abbett Ultra

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Lord Abbett Ultra has generated negative risk-adjusted returns adding no value to fund investors. 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.

Pair Trading with Short-term Fund and Lord Abbett

The main advantage of trading using opposite Short-term Fund and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short-term Fund 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 Short Term Fund Administrative and Lord Abbett Ultra 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.