LGLIX Mutual Fund Volatility

LGLIX -  USA Fund  

USD 34.65  0.16  0.46%

Lord Abbett Growth has Sharpe Ratio of -0.23, which conveys that the entity had -0.23% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any fund is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Lord Abbett exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Lord Abbett Growth mean deviation of 1.72, and Risk Adjusted Performance of (0.16) to check out the risk estimate we provide.

LGLIX Volatility 

 
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Lord Abbett Mutual Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of LGLIX daily returns, and it is calculated using variance and standard deviation. We also use LGLIX's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Lord Abbett volatility.

180 Days Market Risk

Very steady

Chance of Distress

Very Low

180 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Lord Abbett can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Lord Abbett at lower prices. For example, an investor can purchase LGLIX stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Lord Abbett's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Lord Abbett Market Sensitivity And Downside Risk

Lord Abbett's beta coefficient measures the volatility of LGLIX mutual fund compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents LGLIX mutual fund's returns against your selected market. In other words, Lord Abbett's beta of -0.11 provides an investor with an approximation of how much risk Lord Abbett mutual fund can potentially add to one of your existing portfolios.
Let's try to break down what LGLIX's beta means in this case. As returns on the market increase, returns on owning Lord Abbett are expected to decrease at a much lower rate. During the bear market, Lord Abbett is likely to outperform the market.
3 Months Beta |Analyze Lord Abbett Growth Demand Trend
Check current 90 days Lord Abbett correlation with market (DOW)

LGLIX Beta

    
  -0.11  
LGLIX standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  3.0  
It is essential to understand the difference between upside risk (as represented by Lord Abbett's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Lord Abbett stock's daily returns or price. Since the actual investment returns on holding a position in Lord Abbett stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Lord Abbett.

Lord Abbett Growth Mutual Fund Volatility Analysis

Volatility refers to the frequency at which Lord Abbett stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Lord Abbett's price changes. Investors will then calculate the volatility of Lord Abbett's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Lord Abbett's volatility:

Historical Volatility

This type of stock volatility measures Lord Abbett's fluctuations based on previous trends. It's commonly used to predict Lord Abbett's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Lord Abbett's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Lord Abbett Growth Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Lord Abbett Projected Return Density Against Market

Assuming the 90 days horizon Lord Abbett Growth has a beta of -0.1148 . This indicates as returns on benchmark increase, returns on holding Lord Abbett are expected to decrease at a much lower rate. During the bear market, however, Lord Abbett Growth is likely to outperform the market.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lord Abbett or Lord Abbett sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lord Abbett stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a LGLIX stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Lord Abbett Growth is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Lord Abbett's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Lord Abbett stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Lord Abbett Mutual Fund Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lord Abbett or Lord Abbett sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lord Abbett stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a LGLIX stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Assuming the 90 days horizon the coefficient of variation of Lord Abbett is -432.77. The daily returns are distributed with a variance of 8.98 and standard deviation of 3.0. The mean deviation of Lord Abbett Growth is currently at 1.77. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
-0.61
β
Beta against DOW-0.11
σ
Overall volatility
3.00
Ir
Information ratio -0.18

Lord Abbett Mutual Fund Return Volatility

Lord Abbett historical daily return volatility represents how much Lord Abbett stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The fund shows 2.9972% volatility of returns over 90 . By contrast, DOW inherits 0.8429% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Lord Abbett Volatility

Volatility is a rate at which the price of Lord Abbett or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Lord Abbett may increase or decrease. In other words, similar to LGLIX's beta indicator, it measures the risk of Lord Abbett and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lord Abbett fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
The fund invests in equity securities of U.S. and foreign companies across all market capitalization ranges that the portfolio management team believes demonstrate above-average, long-term growth potential. Lord Abbett is traded on NASDAQ Exchange in the United States.

Lord Abbett Investment Opportunity

Lord Abbett Growth has a volatility of 3.0 and is 3.57 times more volatile than DOW. 25  of all equities and portfolios are less risky than Lord Abbett. Compared to the overall equity markets, volatility of historical daily returns of Lord Abbett Growth is lower than 25 () of all global equities and portfolios over the last 90 days. Use Lord Abbett Growth to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Lord Abbett to be traded at $34.3 in 90 days. . Let's try to break down what LGLIX's beta means in this case. As returns on the market increase, returns on owning Lord Abbett are expected to decrease at a much lower rate. During the bear market, Lord Abbett is likely to outperform the market.

Good diversification

The correlation between Lord Abbett Growth and DJI is Good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Growth and DJI in the same portfolio assuming nothing else is changed.

Lord Abbett Additional Risk Indicators

The analysis of Lord Abbett's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Lord Abbett's investment and either accepting that risk or mitigating it. Along with some common measures of Lord Abbett stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance(0.16)
Market Risk Adjusted Performance5.24
Mean Deviation1.72
Coefficient Of Variation(493.52)
Standard Deviation2.92
Variance8.51
Information Ratio(0.18)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Lord Abbett Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Lord Abbett as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Lord Abbett's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Lord Abbett's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Lord Abbett Growth.
Additionally, see Stocks Correlation. Note that the Lord Abbett Growth information on this page should be used as a complementary analysis to other Lord Abbett's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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Please note, there is a significant difference between Lord Abbett's value and its price as these two are different measures arrived at by different means. Investors typically determine Lord Abbett value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lord Abbett's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.