Correlation Between Lord Abbett and Ftfa-franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Ftfa-franklin Templeton 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 Ftfa-franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Vertible and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Lord Abbett and Ftfa-franklin Templeton 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 Ftfa-franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Ftfa-franklin Templeton.
Diversification Opportunities for Lord Abbett and Ftfa-franklin Templeton
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and Ftfa-franklin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Vertible and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton 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 Vertible are associated (or correlated) with Ftfa-franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Lord Abbett i.e., Lord Abbett and Ftfa-franklin Templeton go up and down completely randomly.
Pair Corralation between Lord Abbett and Ftfa-franklin Templeton
Assuming the 90 days horizon Lord Abbett Vertible is expected to generate 1.01 times more return on investment than Ftfa-franklin Templeton. However, Lord Abbett is 1.01 times more volatile than Ftfa Franklin Templeton Growth. It trades about 0.16 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.09 per unit of risk. If you would invest 1,472 in Lord Abbett Vertible on October 25, 2024 and sell it today you would earn a total of 31.00 from holding Lord Abbett Vertible or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Vertible vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Lord Abbett Vertible |
| Ftfa Franklin Templeton |
Lord Abbett and Ftfa-franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Ftfa-franklin Templeton
The main advantage of trading using opposite Lord Abbett and Ftfa-franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Ftfa-franklin Templeton 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 Ftfa-franklin Templeton will offset losses from the drop in Ftfa-franklin Templeton's long position.| Lord Abbett vs. Edward Jones Money | Lord Abbett vs. Prudential Government Money | Lord Abbett vs. Putnam Money Market | Lord Abbett vs. Elfun Government Money |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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