Correlation Between L Abbett and Upright Growth
Can any of the company-specific risk be diversified away by investing in both L Abbett and Upright Growth 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 Upright Growth 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 Upright Growth Income, you can compare the effects of market volatilities on L Abbett and Upright Growth 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 Upright Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Upright Growth.
Diversification Opportunities for L Abbett and Upright Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LGLSX and Upright is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Upright Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upright Growth Income 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 Upright Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upright Growth Income has no effect on the direction of L Abbett i.e., L Abbett and Upright Growth go up and down completely randomly.
Pair Corralation between L Abbett and Upright Growth
Assuming the 90 days horizon L Abbett is expected to generate 1.2 times less return on investment than Upright Growth. But when comparing it to its historical volatility, L Abbett Growth is 1.28 times less risky than Upright Growth. It trades about 0.08 of its potential returns per unit of risk. Upright Growth Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,170 in Upright Growth Income on June 3, 2025 and sell it today you would earn a total of 1,125 from holding Upright Growth Income or generate 96.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
L Abbett Growth vs. Upright Growth Income
Performance |
| Timeline |
| L Abbett Growth |
| Upright Growth Income |
L Abbett and Upright Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and Upright Growth
The main advantage of trading using opposite L Abbett and Upright Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, Upright Growth 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 Upright Growth will offset losses from the drop in Upright Growth'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 |
| Upright Growth vs. Upright Growth Fund | Upright Growth vs. John Hancock Preferred | Upright Growth vs. Fidelity Freedom Index | Upright Growth vs. Mfs Global Total |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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