Correlation Between Angel Oak and Lord Abbett

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

Diversification Opportunities for Angel Oak and Lord Abbett

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Angel and LORD is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding ANGEL OAK FLEXIBLE 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 Angel Oak 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 Angel Oak Flexible 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 Angel Oak i.e., Angel Oak and Lord Abbett go up and down completely randomly.

Pair Corralation between Angel Oak and Lord Abbett

Assuming the 90 days horizon Angel Oak is expected to generate 13.45 times less return on investment than Lord Abbett. In addition to that, Angel Oak is 1.17 times more volatile than Lord Abbett Short. It trades about 0.0 of its total potential returns per unit of risk. Lord Abbett Short is currently generating about 0.08 per unit of volatility. If you would invest  369.00  in Lord Abbett Short on December 29, 2023 and sell it today you would earn a total of  16.00  from holding Lord Abbett Short or generate 4.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.66%
ValuesDaily Returns

ANGEL OAK FLEXIBLE  vs.  LORD ABBETT SHORT

 Performance 
       Timeline  
Angel Oak Flexible 

Risk-Adjusted Performance

18 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Flexible are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Angel Oak 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

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Short are ranked lower than 8 (%) 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.

Angel Oak and Lord Abbett Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Angel Oak and Lord Abbett

The main advantage of trading using opposite Angel Oak and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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 Angel Oak Flexible 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.
Check out your portfolio center.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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