Correlation Between Lord Abbett and High Yield
Can any of the company-specific risk be diversified away by investing in both Lord 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 Lord 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 Lord Abbett Small and High Yield Fund, you can compare the effects of market volatilities on Lord 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 Lord Abbett with a short position of High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and High Yield.
Diversification Opportunities for Lord Abbett and High Yield
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lord and High is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Small 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 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 Small 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 Lord Abbett i.e., Lord Abbett and High Yield go up and down completely randomly.
Pair Corralation between Lord Abbett and High Yield
Assuming the 90 days horizon Lord Abbett Small is expected to generate 10.31 times more return on investment than High Yield. However, Lord Abbett is 10.31 times more volatile than High Yield Fund. It trades about 0.32 of its potential returns per unit of risk. High Yield Fund is currently generating about 0.18 per unit of risk. If you would invest 2,235 in Lord Abbett Small on September 2, 2024 and sell it today you would earn a total of 248.00 from holding Lord Abbett Small or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Small vs. High Yield Fund
Performance |
| Timeline |
| Lord Abbett Small |
| High Yield Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Lord Abbett and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and High Yield
The main advantage of trading using opposite Lord Abbett and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord 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.| Lord Abbett vs. Fidelity Small Cap | Lord Abbett vs. Queens Road Small | Lord Abbett vs. Applied Finance Explorer | Lord Abbett vs. Amg River Road |
| High Yield vs. Rbc Global Opportunities | High Yield vs. Scharf Global Opportunity | High Yield vs. Barings Global Floating | High Yield vs. Wisdomtree Siegel Global |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |