Correlation Between L Abbett and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both L Abbett and Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on L Abbett and Nasdaq 100 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 Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Nasdaq 100.
Diversification Opportunities for L Abbett and Nasdaq 100
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LGLSX and Nasdaq is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of L Abbett i.e., L Abbett and Nasdaq 100 go up and down completely randomly.
Pair Corralation between L Abbett and Nasdaq 100
Assuming the 90 days horizon L Abbett Growth is expected to generate 0.68 times more return on investment than Nasdaq 100. However, L Abbett Growth is 1.48 times less risky than Nasdaq 100. It trades about 0.14 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about 0.06 per unit of risk. 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Growth vs. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| L Abbett Growth |
| Nasdaq 100 2x |
L Abbett and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Nasdaq 100
The main advantage of trading using opposite L Abbett and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100'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 |
| Nasdaq 100 vs. Ambrus Core Bond | Nasdaq 100 vs. Pace High Yield | Nasdaq 100 vs. Franklin High Yield | Nasdaq 100 vs. The National Tax Free |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |