Correlation Between L Abbett and High Yield
Can any of the company-specific risk be diversified away by investing in both L Abbett and High Yield 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 High Yield 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 High Yield Fund, you can compare the effects of market volatilities on L Abbett and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and High Yield.
Diversification Opportunities for L Abbett and High Yield
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LGLSX and High is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Fund 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Fund has no effect on the direction of L Abbett i.e., L Abbett and High Yield go up and down completely randomly.
Pair Corralation between L Abbett and High Yield
Assuming the 90 days horizon L Abbett Growth is expected to generate 6.34 times more return on investment than High Yield. However, L Abbett is 6.34 times more volatile than High Yield Fund. It trades about 0.23 of its potential returns per unit of risk. High Yield Fund is currently generating about 0.26 per unit of risk. If you would invest 4,773 in L Abbett Growth on May 31, 2025 and sell it today you would earn a total of 723.00 from holding L Abbett Growth or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
L Abbett Growth vs. High Yield Fund
Performance |
| Timeline |
| L Abbett Growth |
| High Yield Fund |
L Abbett and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and High Yield
The main advantage of trading using opposite L Abbett and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| L Abbett vs. Small Pany Growth | L Abbett vs. The Hartford Growth | L Abbett vs. Gamco International Growth | L Abbett vs. Crafword Dividend Growth |
| High Yield vs. Firsthand Alternative Energy | High Yield vs. Ivy Natural Resources | High Yield vs. Energy Basic Materials | High Yield vs. Oil Gas Ultrasector |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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