Correlation Between Needham Aggressive and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Lord Abbett 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 Needham Aggressive and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Lord Abbett Global, you can compare the effects of market volatilities on Needham Aggressive and Lord Abbett 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 Needham Aggressive with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Lord Abbett.
Diversification Opportunities for Needham Aggressive and Lord Abbett
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Needham and Lord is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Lord Abbett Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Global and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Global has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Lord Abbett go up and down completely randomly.
Pair Corralation between Needham Aggressive and Lord Abbett
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 3.32 times more return on investment than Lord Abbett. However, Needham Aggressive is 3.32 times more volatile than Lord Abbett Global. It trades about 0.09 of its potential returns per unit of risk. Lord Abbett Global is currently generating about 0.05 per unit of risk. If you would invest 3,019 in Needham Aggressive Growth on September 14, 2024 and sell it today you would earn a total of 2,161 from holding Needham Aggressive Growth or generate 71.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 29.15% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Lord Abbett Global
Performance |
| Timeline |
| Needham Aggressive Growth |
| Lord Abbett Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Needham Aggressive and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Lord Abbett
The main advantage of trading using opposite Needham Aggressive and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Lord Abbett vs. Tfa Alphagen Growth | Lord Abbett vs. Artisan Small Cap | Lord Abbett vs. Franklin Growth Opportunities | Lord Abbett 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |