Correlation Between Lord Abbett and Vy(r) Jpmorgan

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

By analyzing existing cross correlation between Lord Abbett Small and Vy Jpmorgan Small, you can compare the effects of market volatilities on Lord Abbett and Vy(r) Jpmorgan 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 Vy(r) Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Vy(r) Jpmorgan.

Diversification Opportunities for Lord Abbett and Vy(r) Jpmorgan

0.99

Correlation Coefficient

Lord Abbett  Vy(r) Jpmorgan

No risk reduction

The 3 months correlation between Lord and Vy(r) is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Small and Vy Jpmorgan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Jpmorgan Small 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 Small are associated (or correlated) with Vy(r) Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Jpmorgan Small has no effect on the direction of Lord Abbett i.e., Lord Abbett and Vy(r) Jpmorgan go up and down completely randomly.

Pair Corralation between Lord Abbett and Vy(r) Jpmorgan

Assuming the 90 days horizon Lord Abbett Small is expected to generate 1.03 times more return on investment than Vy(r) Jpmorgan. However, Lord Abbett is 1.03 times more volatile than Vy Jpmorgan Small. It trades about 0.14 of its potential returns per unit of risk. Vy Jpmorgan Small is currently generating about 0.13 per unit of risk. If you would invest  1,904  in Lord Abbett Small on May 22, 2025 and sell it today you would earn a total of  177.00  from holding Lord Abbett Small or generate 9.3% 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 Small  vs.  Vy Jpmorgan Small

Lord Abbett Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Small are ranked lower than 11 (%) 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 September 2025.

Vy Jpmorgan Small

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Jpmorgan Small are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vy(r) Jpmorgan may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Lord Abbett and Vy(r) Jpmorgan

The main advantage of trading using opposite Lord Abbett and Vy(r) Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Vy(r) Jpmorgan 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 Vy(r) Jpmorgan will offset losses from the drop in Vy(r) Jpmorgan's long position.

The idea behind Lord Abbett Small and Vy Jpmorgan Small 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.