Correlation Between Lord Abbett and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and Timothy Plan 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 Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Diversified and Timothy Plan High, you can compare the effects of market volatilities on Lord Abbett and Timothy Plan 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 Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Timothy Plan.
Diversification Opportunities for Lord Abbett and Timothy Plan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and Timothy is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Diversified and Timothy Plan High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan High 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 Diversified are associated (or correlated) with Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan High has no effect on the direction of Lord Abbett i.e., Lord Abbett and Timothy Plan go up and down completely randomly.
Pair Corralation between Lord Abbett and Timothy Plan
Assuming the 90 days horizon Lord Abbett Diversified is expected to generate 2.24 times more return on investment than Timothy Plan. However, Lord Abbett is 2.24 times more volatile than Timothy Plan High. It trades about 0.3 of its potential returns per unit of risk. Timothy Plan High is currently generating about 0.42 per unit of risk. If you would invest 1,615 in Lord Abbett Diversified on May 30, 2025 and sell it today you would earn a total of 79.00 from holding Lord Abbett Diversified or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Diversified vs. Timothy Plan High
Performance |
| Timeline |
| Lord Abbett Diversified |
| Timothy Plan High |
Lord Abbett and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Timothy Plan
The main advantage of trading using opposite Lord Abbett and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, Timothy Plan 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 Timothy Plan will offset losses from the drop in Timothy Plan's long position.| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
| Timothy Plan vs. Doubleline Emerging Markets | Timothy Plan vs. Harding Loevner Emerging | Timothy Plan vs. T Rowe Price | Timothy Plan vs. Western Assets Emerging |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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