Correlation Between Lord Abbett and Slow Capital
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Slow Capital 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 Lord Abbett and Slow Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Income and Slow Capital Growth, you can compare the effects of market volatilities on Lord Abbett and Slow Capital 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 Lord Abbett with a short position of Slow Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Slow Capital.
Diversification Opportunities for Lord Abbett and Slow Capital
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LORD and Slow is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Income and Slow Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slow Capital Growth and Lord Abbett 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 Lord Abbett Income are associated (or correlated) with Slow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slow Capital Growth has no effect on the direction of Lord Abbett i.e., Lord Abbett and Slow Capital go up and down completely randomly.
Pair Corralation between Lord Abbett and Slow Capital
Assuming the 90 days horizon Lord Abbett is expected to generate 1.15 times less return on investment than Slow Capital. But when comparing it to its historical volatility, Lord Abbett Income is 2.74 times less risky than Slow Capital. It trades about 0.19 of its potential returns per unit of risk. Slow Capital Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 973.00 in Slow Capital Growth on June 8, 2025 and sell it today you would earn a total of 40.00 from holding Slow Capital Growth or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Lord Abbett Income vs. Slow Capital Growth
Performance |
| Timeline |
| Lord Abbett Income |
| Slow Capital Growth |
Lord Abbett and Slow Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Slow Capital
The main advantage of trading using opposite Lord Abbett and Slow Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Slow Capital 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 Slow Capital will offset losses from the drop in Slow Capital's long position.| Lord Abbett vs. Gamco Natural Resources | Lord Abbett vs. Thrivent Natural Resources | Lord Abbett vs. World Energy Fund | Lord Abbett vs. Pimco Energy Tactical |
| Slow Capital vs. Ab Flexfee Thematic | Slow Capital vs. Thornburg Limited Term | Slow Capital vs. American Funds Retirement | Slow Capital vs. Columbia Moderate C |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |