Correlation Between Seafarer Overseas and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Seafarer Overseas 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 Seafarer Overseas and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seafarer Overseas Growth and Lord Abbett Inv, you can compare the effects of market volatilities on Seafarer Overseas 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 Seafarer Overseas with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seafarer Overseas and Lord Abbett.
Diversification Opportunities for Seafarer Overseas and Lord Abbett
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seafarer and Lord is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Seafarer Overseas Growth and Lord Abbett Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Inv and Seafarer Overseas 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 Seafarer Overseas Growth 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 Inv has no effect on the direction of Seafarer Overseas i.e., Seafarer Overseas and Lord Abbett go up and down completely randomly.
Pair Corralation between Seafarer Overseas and Lord Abbett
Assuming the 90 days horizon Seafarer Overseas Growth is expected to generate 6.54 times more return on investment than Lord Abbett. However, Seafarer Overseas is 6.54 times more volatile than Lord Abbett Inv. It trades about 0.19 of its potential returns per unit of risk. Lord Abbett Inv is currently generating about 0.21 per unit of risk. If you would invest 1,275 in Seafarer Overseas Growth on June 3, 2025 and sell it today you would earn a total of 108.00 from holding Seafarer Overseas Growth or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seafarer Overseas Growth vs. Lord Abbett Inv
Performance |
| Timeline |
| Seafarer Overseas Growth |
| Lord Abbett Inv |
Seafarer Overseas and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seafarer Overseas and Lord Abbett
The main advantage of trading using opposite Seafarer Overseas and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seafarer Overseas 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.| Seafarer Overseas vs. Ab Select Longshort | Seafarer Overseas vs. Rbc Emerging Markets | Seafarer Overseas vs. Shelton Emerging Markets | Seafarer Overseas vs. Ep Emerging Markets |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Lord Abbett Growth |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |