Correlation Between Lord Abbett and Sentinel Common

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

By analyzing existing cross correlation between Lord Abbett Intermediate and Sentinel Mon Stock, you can compare the effects of market volatilities on Lord Abbett and Sentinel Common 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 Sentinel Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Sentinel Common.

Diversification Opportunities for Lord Abbett and Sentinel Common

0.85

Correlation Coefficient

Lord Abbett  Sentinel Common

Very poor diversification

The 3 months correlation between Lord and Sentinel is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Intermediate and Sentinel Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Mon Stock 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 Intermediate are associated (or correlated) with Sentinel Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Mon Stock has no effect on the direction of Lord Abbett i.e., Lord Abbett and Sentinel Common go up and down completely randomly.

Pair Corralation between Lord Abbett and Sentinel Common

Assuming the 90 days horizon Lord Abbett Intermediate is expected to generate 0.19 times more return on investment than Sentinel Common. However, Lord Abbett Intermediate is 5.19 times less risky than Sentinel Common. It trades about 0.41 of its potential returns per unit of risk. Sentinel Mon Stock is currently generating about 0.06 per unit of risk. If you would invest  997.00  in Lord Abbett Intermediate on August 21, 2025 and sell it today you would earn a total of  36.00  from holding Lord Abbett Intermediate or generate 3.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Lord Abbett Intermediate  vs.  Sentinel Mon Stock

Lord Abbett Intermediate

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Intermediate are ranked lower than 32 (%) 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.

Sentinel Mon Stock

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Sentinel Mon Stock are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Sentinel Common 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 Sentinel Common

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

The idea behind Lord Abbett Intermediate and Sentinel Mon Stock 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.