Correlation Between Touchstone Small and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Touchstone Small 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 Touchstone Small and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Small Cap and Lord Abbett Trust, you can compare the effects of market volatilities on Touchstone Small 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 Touchstone Small with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Small and Lord Abbett.
Diversification Opportunities for Touchstone Small and Lord Abbett
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Touchstone and Lord is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Small Cap and Lord Abbett Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Trust and Touchstone Small 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 Touchstone Small Cap 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 Trust has no effect on the direction of Touchstone Small i.e., Touchstone Small and Lord Abbett go up and down completely randomly.
Pair Corralation between Touchstone Small and Lord Abbett
Assuming the 90 days horizon Touchstone Small Cap is expected to generate 1.24 times more return on investment than Lord Abbett. However, Touchstone Small is 1.24 times more volatile than Lord Abbett Trust. It trades about 0.17 of its potential returns per unit of risk. Lord Abbett Trust is currently generating about -0.01 per unit of risk. If you would invest 3,850 in Touchstone Small Cap on October 25, 2024 and sell it today you would earn a total of 117.00 from holding Touchstone Small Cap or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Touchstone Small Cap vs. Lord Abbett Trust
Performance |
| Timeline |
| Touchstone Small Cap |
| Lord Abbett Trust |
Touchstone Small and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Small and Lord Abbett
The main advantage of trading using opposite Touchstone Small and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Small 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.| Touchstone Small vs. Deutsche Gold Precious | Touchstone Small vs. James Balanced Golden | Touchstone Small vs. Sprott Gold Equity | Touchstone Small vs. First Eagle Gold |
| Lord Abbett vs. Sp Smallcap 600 | Lord Abbett vs. Ab Small Cap | Lord Abbett vs. Touchstone Small Cap | Lord Abbett vs. Smallcap Fund Fka |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |