Correlation Between Lord Abbett and Dfa Short-duration

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

By analyzing existing cross correlation between Lord Abbett Short and Dfa Short Duration Real, you can compare the effects of market volatilities on Lord Abbett and Dfa Short-duration 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 Dfa Short-duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Dfa Short-duration.

Diversification Opportunities for Lord Abbett and Dfa Short-duration

0.0

Correlation Coefficient

Lord Abbett  Dfa Short-duration

Pay attention - limited upside

The 3 months correlation between Lord and Dfa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Short and Dfa Short Duration Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Short Duration 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 Short are associated (or correlated) with Dfa Short-duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Short Duration has no effect on the direction of Lord Abbett i.e., Lord Abbett and Dfa Short-duration go up and down completely randomly.

Pair Corralation between Lord Abbett and Dfa Short-duration

If you would invest  894.00  in Lord Abbett Short on July 7, 2025 and sell it today you would earn a total of  93.00  from holding Lord Abbett Short or generate 10.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lord Abbett Short  vs.  Dfa Short Duration Real

Lord Abbett Short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Short are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Lord Abbett is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dfa Short Duration

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Dfa Short Duration Real are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Dfa Short-duration is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lord Abbett and Dfa Short-duration

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

The idea behind Lord Abbett Short and Dfa Short Duration Real 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.