Correlation Between Pinnacle Sherman and Lord Abbett

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

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

Diversification Opportunities for Pinnacle Sherman and Lord Abbett

0.98

Correlation Coefficient

Pinnacle Sherman  Lord Abbett

Almost no diversification

The 3 months correlation between Pinnacle and Lord is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Sherman Multi Strateg and Lord Abbett Calibrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Calibrated and Pinnacle Sherman 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 Pinnacle Sherman Multi Strategy 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 Calibrated has no effect on the direction of Pinnacle Sherman i.e., Pinnacle Sherman and Lord Abbett go up and down completely randomly.

Pair Corralation between Pinnacle Sherman and Lord Abbett

Assuming the 90 days horizon Pinnacle Sherman is expected to generate 1.12 times less return on investment than Lord Abbett. In addition to that, Pinnacle Sherman is 1.03 times more volatile than Lord Abbett Calibrated. It trades about 0.16 of its total potential returns per unit of risk. Lord Abbett Calibrated is currently generating about 0.18 per unit of volatility. If you would invest  2,315  in Lord Abbett Calibrated on May 18, 2025 and sell it today you would earn a total of  155.00  from holding Lord Abbett Calibrated or generate 6.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Pinnacle Sherman Multi Strateg  vs.  Lord Abbett Calibrated

Pinnacle Sherman Multi

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pinnacle Sherman Multi Strategy are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Pinnacle Sherman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lord Abbett Calibrated

Risk-Adjusted Performance

Good

Over the last 90 days Lord Abbett Calibrated has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak basic indicators, Lord Abbett may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pinnacle Sherman and Lord Abbett

The main advantage of trading using opposite Pinnacle Sherman and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinnacle Sherman 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 Pinnacle Sherman Multi Strategy and Lord Abbett Calibrated 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.