Correlation Between Falcon Focus and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Lord Abbett Small, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Lord Abbett.
Diversification Opportunities for Falcon Focus and Lord Abbett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and Lord Abbett Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Small and Falcon Focus 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 Falcon Focus Scv 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 Small has no effect on the direction of Falcon Focus i.e., Falcon Focus and Lord Abbett go up and down completely randomly.
Pair Corralation between Falcon Focus and Lord Abbett
If you would invest 1,315 in Falcon Focus Scv on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Falcon Focus Scv or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 25.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. Lord Abbett Small
Performance |
| Timeline |
| Falcon Focus Scv |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lord Abbett Small |
Falcon Focus and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Lord Abbett
The main advantage of trading using opposite Falcon Focus and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.| Falcon Focus vs. Goldman Sachs Short | Falcon Focus vs. Short Precious Metals | Falcon Focus vs. James Balanced Golden | Falcon Focus vs. Precious Metals And |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Transaction History View history of all your transactions and understand their impact on performance |