Correlation Between Lord Abbett and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Catalyst/map Global 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 Lord Abbett and Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Balanced and Catalystmap Global Equity, you can compare the effects of market volatilities on Lord Abbett and Catalyst/map Global 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 Lord Abbett with a short position of Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Catalyst/map Global.
Diversification Opportunities for Lord Abbett and Catalyst/map Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Catalyst/map is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Balanced and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global Equity and Lord Abbett 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 Lord Abbett Balanced are associated (or correlated) with Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global Equity has no effect on the direction of Lord Abbett i.e., Lord Abbett and Catalyst/map Global go up and down completely randomly.
Pair Corralation between Lord Abbett and Catalyst/map Global
Assuming the 90 days horizon Lord Abbett is expected to generate 1.2 times less return on investment than Catalyst/map Global. But when comparing it to its historical volatility, Lord Abbett Balanced is 1.17 times less risky than Catalyst/map Global. It trades about 0.33 of its potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,759 in Catalystmap Global Equity on April 24, 2025 and sell it today you would earn a total of 173.00 from holding Catalystmap Global Equity or generate 9.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lord Abbett Balanced vs. Catalystmap Global Equity
Performance |
Timeline |
Lord Abbett Balanced |
Catalystmap Global Equity |
Lord Abbett and Catalyst/map Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lord Abbett and Catalyst/map Global
The main advantage of trading using opposite Lord Abbett and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.Lord Abbett vs. Calvert Global Energy | Lord Abbett vs. Nuveen Santa Barbara | Lord Abbett vs. Rbc Global Equity | Lord Abbett vs. Morningstar Global Income |
Catalyst/map Global vs. Ab Bond Inflation | Catalyst/map Global vs. Rbc Funds Trust | Catalyst/map Global vs. Ab Bond Inflation | Catalyst/map Global vs. The National Tax Free |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |