Correlation Between Lkcm Aquinas and Lkcm Balanced
Can any of the company-specific risk be diversified away by investing in both Lkcm Aquinas and Lkcm Balanced 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 Lkcm Aquinas and Lkcm Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Aquinas Catholic and Lkcm Balanced Fund, you can compare the effects of market volatilities on Lkcm Aquinas and Lkcm Balanced 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 Lkcm Aquinas with a short position of Lkcm Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Aquinas and Lkcm Balanced.
Diversification Opportunities for Lkcm Aquinas and Lkcm Balanced
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lkcm and Lkcm is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Aquinas Catholic and Lkcm Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Balanced and Lkcm Aquinas 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 Lkcm Aquinas Catholic are associated (or correlated) with Lkcm Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Balanced has no effect on the direction of Lkcm Aquinas i.e., Lkcm Aquinas and Lkcm Balanced go up and down completely randomly.
Pair Corralation between Lkcm Aquinas and Lkcm Balanced
Assuming the 90 days horizon Lkcm Aquinas Catholic is expected to generate 1.56 times more return on investment than Lkcm Balanced. However, Lkcm Aquinas is 1.56 times more volatile than Lkcm Balanced Fund. It trades about 0.04 of its potential returns per unit of risk. Lkcm Balanced Fund is currently generating about 0.06 per unit of risk. If you would invest 1,587 in Lkcm Aquinas Catholic on November 2, 2024 and sell it today you would earn a total of 243.00 from holding Lkcm Aquinas Catholic or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Aquinas Catholic vs. Lkcm Balanced Fund
Performance |
| Timeline |
| Lkcm Aquinas Catholic |
| Lkcm Balanced |
Lkcm Aquinas and Lkcm Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Aquinas and Lkcm Balanced
The main advantage of trading using opposite Lkcm Aquinas and Lkcm Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Aquinas position performs unexpectedly, Lkcm Balanced 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 Lkcm Balanced will offset losses from the drop in Lkcm Balanced's long position.| Lkcm Aquinas vs. Vanguard Financials Index | Lkcm Aquinas vs. Blackstone Secured Lending | Lkcm Aquinas vs. Gabelli Global Financial | Lkcm Aquinas vs. Putnam Global Financials |
| Lkcm Balanced vs. Mairs Power Balanced | Lkcm Balanced vs. Lkcm Equity Fund | Lkcm Balanced vs. Boston Trust Asset | Lkcm Balanced vs. Value Line Asset |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |