Correlation Between Eic Value and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Lord Abbett Health, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Lord Abbett.
Diversification Opportunities for Eic Value and Lord Abbett
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eic and Lord is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Lord Abbett Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Health and Eic Value 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 Eic Value Fund 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 Health has no effect on the direction of Eic Value i.e., Eic Value and Lord Abbett go up and down completely randomly.
Pair Corralation between Eic Value and Lord Abbett
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.58 times more return on investment than Lord Abbett. However, Eic Value Fund is 1.71 times less risky than Lord Abbett. It trades about 0.14 of its potential returns per unit of risk. Lord Abbett Health is currently generating about -0.04 per unit of risk. If you would invest 1,694 in Eic Value Fund on December 26, 2024 and sell it today you would earn a total of 100.00 from holding Eic Value Fund or generate 5.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eic Value Fund vs. Lord Abbett Health
Performance |
Timeline |
Eic Value Fund |
Lord Abbett Health |
Eic Value and Lord Abbett Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eic Value and Lord Abbett
The main advantage of trading using opposite Eic Value and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.Eic Value vs. Jp Morgan Smartretirement | Eic Value vs. Tax Managed International Equity | Eic Value vs. Versatile Bond Portfolio | Eic Value vs. Scharf Global Opportunity |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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