Correlation Between Catalystaspect Enhanced and Lord Abbett

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

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

Diversification Opportunities for Catalystaspect Enhanced and Lord Abbett

0.95

Correlation Coefficient

Catalystaspect Enhanced  Lord Abbett

Almost no diversification

The 3 months correlation between Catalystaspect and Lord is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Catalystaspect Enhanced Multi and Lord Abbett Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Convertible and Catalystaspect Enhanced 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 Catalystaspect Enhanced Multi Asset 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 Convertible has no effect on the direction of Catalystaspect Enhanced i.e., Catalystaspect Enhanced and Lord Abbett go up and down completely randomly.

Pair Corralation between Catalystaspect Enhanced and Lord Abbett

Assuming the 90 days horizon Catalystaspect Enhanced is expected to generate 1.19 times less return on investment than Lord Abbett. In addition to that, Catalystaspect Enhanced is 1.37 times more volatile than Lord Abbett Convertible. It trades about 0.21 of its total potential returns per unit of risk. Lord Abbett Convertible is currently generating about 0.34 per unit of volatility. If you would invest  1,442  in Lord Abbett Convertible on May 2, 2025 and sell it today you would earn a total of  143.00  from holding Lord Abbett Convertible or generate 9.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Catalystaspect Enhanced Multi   vs.  Lord Abbett Convertible

Catalystaspect Enhanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystaspect Enhanced Multi Asset are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalystaspect Enhanced may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Lord Abbett Convertible

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Convertible are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Lord Abbett may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Catalystaspect Enhanced and Lord Abbett

The main advantage of trading using opposite Catalystaspect Enhanced and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalystaspect Enhanced 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 Catalystaspect Enhanced Multi Asset and Lord Abbett Convertible 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.