Correlation Between Thrivent Large and L Abbett
Can any of the company-specific risk be diversified away by investing in both Thrivent Large and L 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 Thrivent Large and L Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Large Cap and L Abbett Fundamental, you can compare the effects of market volatilities on Thrivent Large and L 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 Thrivent Large with a short position of L Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Large and L Abbett.
Diversification Opportunities for Thrivent Large and L Abbett
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and LAVVX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Large Cap and L Abbett Fundamental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Abbett Fundamental and Thrivent Large 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 Thrivent Large Cap are associated (or correlated) with L Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Abbett Fundamental has no effect on the direction of Thrivent Large i.e., Thrivent Large and L Abbett go up and down completely randomly.
Pair Corralation between Thrivent Large and L Abbett
Assuming the 90 days horizon Thrivent Large Cap is expected to generate 1.57 times more return on investment than L Abbett. However, Thrivent Large is 1.57 times more volatile than L Abbett Fundamental. It trades about 0.1 of its potential returns per unit of risk. L Abbett Fundamental is currently generating about 0.13 per unit of risk. If you would invest 1,762 in Thrivent Large Cap on September 14, 2024 and sell it today you would earn a total of 489.00 from holding Thrivent Large Cap or generate 27.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Large Cap vs. L Abbett Fundamental
Performance |
| Timeline |
| Thrivent Large Cap |
| L Abbett Fundamental |
Thrivent Large and L Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Large and L Abbett
The main advantage of trading using opposite Thrivent Large and L Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Large position performs unexpectedly, L 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 L Abbett will offset losses from the drop in L Abbett's long position.| Thrivent Large vs. Thrivent Partner Worldwide | Thrivent Large vs. Thrivent Partner Worldwide | Thrivent Large vs. Thrivent Limited Maturity | Thrivent Large vs. Thrivent Moderate Allocation |
| L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Focused | L Abbett vs. Floating Rate Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |