Correlation Between Lord Abbett and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett High and Eaton Vance National, you can compare the effects of market volatilities on Lord Abbett and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Eaton Vance.
Diversification Opportunities for Lord Abbett and Eaton Vance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett High and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National 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 High are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance National has no effect on the direction of Lord Abbett i.e., Lord Abbett and Eaton Vance go up and down completely randomly.
Pair Corralation between Lord Abbett and Eaton Vance
If you would invest 563.00 in Lord Abbett High on September 12, 2024 and sell it today you would earn a total of 87.00 from holding Lord Abbett High or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lord Abbett High vs. Eaton Vance National
Performance |
| Timeline |
| Lord Abbett High |
| Eaton Vance National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lord Abbett and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Eaton Vance
The main advantage of trading using opposite Lord Abbett and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Lord Abbett vs. Elfun Diversified Fund | Lord Abbett vs. Wealthbuilder Conservative Allocation | Lord Abbett vs. Lord Abbett Diversified | Lord Abbett vs. Federated Hermes Conservative |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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