Correlation Between L Abbett and Fs Managed
Can any of the company-specific risk be diversified away by investing in both L Abbett and Fs Managed 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 L Abbett and Fs Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Growth and Fs Managed Futures, you can compare the effects of market volatilities on L Abbett and Fs Managed 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 L Abbett with a short position of Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Fs Managed.
Diversification Opportunities for L Abbett and Fs Managed
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LGLSX and FMFFX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Fs Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Managed Futures and L 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 L Abbett Growth are associated (or correlated) with Fs Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Managed Futures has no effect on the direction of L Abbett i.e., L Abbett and Fs Managed go up and down completely randomly.
Pair Corralation between L Abbett and Fs Managed
If you would invest 4,707 in L Abbett Growth on September 12, 2024 and sell it today you would earn a total of 157.00 from holding L Abbett Growth or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
L Abbett Growth vs. Fs Managed Futures
Performance |
| Timeline |
| L Abbett Growth |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
L Abbett and Fs Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Fs Managed
The main advantage of trading using opposite L Abbett and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Fs Managed 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 Fs Managed will offset losses from the drop in Fs Managed's long position.| L Abbett vs. Dreyfus Technology Growth | L Abbett vs. Pgim Jennison Technology | L Abbett vs. Fidelity Advisor Technology | L Abbett vs. Global Technology Portfolio |
| Fs Managed vs. L Abbett Growth | Fs Managed vs. Artisan Small Cap | Fs Managed vs. Tfa Alphagen Growth | Fs Managed 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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