Correlation Between Oppenheimer Aggrssv and Lord Abbett

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

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

Diversification Opportunities for Oppenheimer Aggrssv and Lord Abbett

0.8

Correlation Coefficient

Oppenheimer Aggrssv  Lord Abbett

Very poor diversification

The 3 months correlation between Oppenheimer and Lord is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Aggrssv Invstr and Lord Abbett Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inflation and Oppenheimer Aggrssv 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 Oppenheimer Aggrssv Invstr 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 Inflation has no effect on the direction of Oppenheimer Aggrssv i.e., Oppenheimer Aggrssv and Lord Abbett go up and down completely randomly.

Pair Corralation between Oppenheimer Aggrssv and Lord Abbett

Assuming the 90 days horizon Oppenheimer Aggrssv Invstr is expected to generate 4.24 times more return on investment than Lord Abbett. However, Oppenheimer Aggrssv is 4.24 times more volatile than Lord Abbett Inflation. It trades about 0.18 of its potential returns per unit of risk. Lord Abbett Inflation is currently generating about 0.16 per unit of risk. If you would invest  1,342  in Oppenheimer Aggrssv Invstr on May 6, 2025 and sell it today you would earn a total of  96.00  from holding Oppenheimer Aggrssv Invstr or generate 7.15% return on investment over 90 days.

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

Oppenheimer Aggrssv Invstr  vs.  Lord Abbett Inflation

Oppenheimer Aggrssv

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Aggrssv Invstr are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Oppenheimer Aggrssv may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Lord Abbett Inflation

Risk-Adjusted Performance

Good

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

Pair Trading with Oppenheimer Aggrssv and Lord Abbett

The main advantage of trading using opposite Oppenheimer Aggrssv and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Aggrssv 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 Oppenheimer Aggrssv Invstr and Lord Abbett Inflation 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.