Correlation Between Franklin Growth and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Franklin Growth 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 Franklin Growth and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Lord Abbett Global, you can compare the effects of market volatilities on Franklin Growth 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 Franklin Growth with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Lord Abbett.
Diversification Opportunities for Franklin Growth and Lord Abbett
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Lord is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Lord Abbett Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Global and Franklin Growth 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 Franklin Growth Opportunities 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 Global has no effect on the direction of Franklin Growth i.e., Franklin Growth and Lord Abbett go up and down completely randomly.
Pair Corralation between Franklin Growth and Lord Abbett
If you would invest 6,360 in Franklin Growth Opportunities on September 14, 2024 and sell it today you would earn a total of 72.00 from holding Franklin Growth Opportunities or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Lord Abbett Global
Performance |
| Timeline |
| Franklin Growth Oppo |
| Lord Abbett Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Growth and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Lord Abbett
The main advantage of trading using opposite Franklin Growth and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth 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.| Franklin Growth vs. Western Asset Municipal | Franklin Growth vs. Artisan High Income | Franklin Growth vs. Dreyfusstandish Global Fixed | Franklin Growth vs. Dws Government Money |
| Lord Abbett vs. Tfa Alphagen Growth | Lord Abbett vs. Artisan Small Cap | Lord Abbett vs. Franklin Growth Opportunities | Lord Abbett vs. Needham Aggressive Growth |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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