Correlation Between Federated Emerging and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Federated Emerging 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 Federated Emerging and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Emerging Market and Lord Abbett Diversified, you can compare the effects of market volatilities on Federated Emerging 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 Federated Emerging with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Emerging and Lord Abbett.
Diversification Opportunities for Federated Emerging and Lord Abbett
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Lord is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Emerging Market and Lord Abbett Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Diversified and Federated Emerging 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 Federated Emerging Market 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 Diversified has no effect on the direction of Federated Emerging i.e., Federated Emerging and Lord Abbett go up and down completely randomly.
Pair Corralation between Federated Emerging and Lord Abbett
Assuming the 90 days horizon Federated Emerging Market is expected to generate 0.83 times more return on investment than Lord Abbett. However, Federated Emerging Market is 1.21 times less risky than Lord Abbett. It trades about 0.34 of its potential returns per unit of risk. Lord Abbett Diversified is currently generating about 0.23 per unit of risk. If you would invest 821.00 in Federated Emerging Market on July 20, 2025 and sell it today you would earn a total of 40.00 from holding Federated Emerging Market or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Emerging Market vs. Lord Abbett Diversified
Performance |
| Timeline |
| Federated Emerging Market |
| Lord Abbett Diversified |
Federated Emerging and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Emerging and Lord Abbett
The main advantage of trading using opposite Federated Emerging and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Emerging 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.| Federated Emerging vs. Shelton Emerging Markets | Federated Emerging vs. Angel Oak Multi Strategy | Federated Emerging vs. Western Assets Emerging | Federated Emerging vs. Franklin Emerging Market |
| Lord Abbett vs. Small Pany Growth | Lord Abbett vs. Aqr Small Cap | Lord Abbett vs. Touchstone Small Cap | Lord Abbett vs. Eagle Small 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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