Correlation Between Franklin and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Franklin 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 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 Government Money and Lord Abbett Growth, you can compare the effects of market volatilities on Franklin 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 with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Lord Abbett.
Diversification Opportunities for Franklin and Lord Abbett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Lord Abbett Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Growth and Franklin 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 Government Money 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 Growth has no effect on the direction of Franklin i.e., Franklin and Lord Abbett go up and down completely randomly.
Pair Corralation between Franklin and Lord Abbett
If you would invest 100.00 in Franklin Government Money on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Government Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Government Money vs. Lord Abbett Growth
Performance |
| Timeline |
| Franklin Government Money |
| Lord Abbett Growth |
Franklin and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Lord Abbett
The main advantage of trading using opposite Franklin and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin 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 vs. Pace Municipal Fixed | Franklin vs. Aig Government Money | Franklin vs. Alpine Ultra Short | Franklin vs. Morningstar Municipal Bond |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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