Correlation Between L Abbett and Amer Beacon
Can any of the company-specific risk be diversified away by investing in both L Abbett and Amer Beacon 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 L Abbett and Amer Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L Abbett Growth and Amer Beacon Garcia, you can compare the effects of market volatilities on L Abbett and Amer Beacon 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 L Abbett with a short position of Amer Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Amer Beacon.
Diversification Opportunities for L Abbett and Amer Beacon
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LGLSX and Amer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Amer Beacon Garcia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Beacon Garcia and L 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 L Abbett Growth are associated (or correlated) with Amer Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Beacon Garcia has no effect on the direction of L Abbett i.e., L Abbett and Amer Beacon go up and down completely randomly.
Pair Corralation between L Abbett and Amer Beacon
Assuming the 90 days horizon L Abbett Growth is expected to generate 3.22 times more return on investment than Amer Beacon. However, L Abbett is 3.22 times more volatile than Amer Beacon Garcia. It trades about 0.2 of its potential returns per unit of risk. Amer Beacon Garcia is currently generating about 0.15 per unit of risk. If you would invest 4,773 in L Abbett Growth on June 1, 2025 and sell it today you would earn a total of 650.00 from holding L Abbett Growth or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Growth vs. Amer Beacon Garcia
Performance |
| Timeline |
| L Abbett Growth |
| Amer Beacon Garcia |
L Abbett and Amer Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Amer Beacon
The main advantage of trading using opposite L Abbett and Amer Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Amer Beacon 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 Amer Beacon will offset losses from the drop in Amer Beacon's long position.| L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Focused | L Abbett vs. Floating Rate Fund |
| Amer Beacon vs. Ab Global Risk | Amer Beacon vs. L Abbett Growth | Amer Beacon vs. Mh Elite Fund | Amer Beacon vs. Tax Managed Large 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |