Correlation Between Lord Abbett and First Eagle
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and First Eagle Gold, you can compare the effects of market volatilities on Lord Abbett and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and First Eagle.
Diversification Opportunities for Lord Abbett and First Eagle
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and First is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 Diversified are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Lord Abbett i.e., Lord Abbett and First Eagle go up and down completely randomly.
Pair Corralation between Lord Abbett and First Eagle
If you would invest 1,511 in Lord Abbett Diversified on September 1, 2024 and sell it today you would earn a total of 141.00 from holding Lord Abbett Diversified or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
Lord Abbett Diversified vs. First Eagle Gold
Performance |
| Timeline |
| Lord Abbett Diversified |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lord Abbett and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and First Eagle
The main advantage of trading using opposite Lord Abbett and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Lord Abbett vs. Transamerica Cleartrack Retirement | Lord Abbett vs. Blackrock Moderate Prepared | Lord Abbett vs. Wisdomtree Siegel Moderate | Lord Abbett vs. Target Retirement 2040 |
| First Eagle vs. Federated Kaufmann Large | First Eagle vs. Aqr Large Cap | First Eagle vs. Touchstone Large Cap | First Eagle vs. Tax Managed Large Cap |
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.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |