Correlation Between American Beacon and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both American Beacon and Lebenthal Lisanti 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 American Beacon and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon The and Lebenthal Lisanti Small, you can compare the effects of market volatilities on American Beacon and Lebenthal Lisanti 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 American Beacon with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Lebenthal Lisanti.
Diversification Opportunities for American Beacon and Lebenthal Lisanti
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Lebenthal is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon The and Lebenthal Lisanti Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lebenthal Lisanti Small and American Beacon 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 American Beacon The are associated (or correlated) with Lebenthal Lisanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lebenthal Lisanti Small has no effect on the direction of American Beacon i.e., American Beacon and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between American Beacon and Lebenthal Lisanti
Assuming the 90 days horizon American Beacon The is expected to generate 0.36 times more return on investment than Lebenthal Lisanti. However, American Beacon The is 2.81 times less risky than Lebenthal Lisanti. It trades about -0.13 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about -0.05 per unit of risk. If you would invest 2,469 in American Beacon The on September 12, 2024 and sell it today you would lose (37.00) from holding American Beacon The or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Beacon The vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| American Beacon |
| Lebenthal Lisanti Small |
American Beacon and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Lebenthal Lisanti
The main advantage of trading using opposite American Beacon and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Lebenthal Lisanti 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 Lebenthal Lisanti will offset losses from the drop in Lebenthal Lisanti's long position.| American Beacon vs. Lebenthal Lisanti Small | American Beacon vs. Kinetics Small Cap | American Beacon vs. Pace Smallmedium Value | American Beacon vs. Cardinal Small Cap |
| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |