Correlation Between L Abbett and Timothy Plan

Can any of the company-specific risk be diversified away by investing in both L 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 L 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 L Abbett Growth and Timothy Plan International, you can compare the effects of market volatilities on L 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 L Abbett with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and Timothy Plan.

Diversification Opportunities for L Abbett and Timothy Plan

0.92

Correlation Coefficient

L Abbett  Timothy Plan

Almost no diversification

The 3 months correlation between LGLSX and Timothy is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and Timothy Plan International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Interna 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 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 Interna has no effect on the direction of L Abbett i.e., L Abbett and Timothy Plan go up and down completely randomly.

Pair Corralation between L Abbett and Timothy Plan

Assuming the 90 days horizon L Abbett Growth is expected to generate 1.36 times more return on investment than Timothy Plan. However, L Abbett is 1.36 times more volatile than Timothy Plan International. It trades about 0.2 of its potential returns per unit of risk. Timothy Plan International is currently generating about 0.18 per unit of risk. If you would invest  5,041  in L Abbett Growth on July 2, 2025 and sell it today you would earn a total of  645.00  from holding L Abbett Growth or generate 12.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

L Abbett Growth  vs.  Timothy Plan International

L Abbett Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in L Abbett Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, L Abbett may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Timothy Plan Interna

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Plan International are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Timothy Plan may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with L Abbett and Timothy Plan

The main advantage of trading using opposite L Abbett and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L 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.

The idea behind L Abbett Growth and Timothy Plan International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.