Correlation Between Lebenthal Lisanti and Invesco Balanced-risk
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Invesco Balanced-risk 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 Lebenthal Lisanti and Invesco Balanced-risk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lebenthal Lisanti Small and Invesco Balanced Risk Modity, you can compare the effects of market volatilities on Lebenthal Lisanti and Invesco Balanced-risk 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 Lebenthal Lisanti with a short position of Invesco Balanced-risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Invesco Balanced-risk.
Diversification Opportunities for Lebenthal Lisanti and Invesco Balanced-risk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lebenthal and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Invesco Balanced Risk Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Balanced Risk and Lebenthal Lisanti 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 Lebenthal Lisanti Small are associated (or correlated) with Invesco Balanced-risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Balanced Risk has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Invesco Balanced-risk go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Invesco Balanced-risk
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 2.55 times less return on investment than Invesco Balanced-risk. In addition to that, Lebenthal Lisanti is 2.41 times more volatile than Invesco Balanced Risk Modity. It trades about 0.03 of its total potential returns per unit of risk. Invesco Balanced Risk Modity is currently generating about 0.19 per unit of volatility. If you would invest 665.00 in Invesco Balanced Risk Modity on November 3, 2024 and sell it today you would earn a total of 18.00 from holding Invesco Balanced Risk Modity or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Invesco Balanced Risk Modity
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Invesco Balanced Risk |
Lebenthal Lisanti and Invesco Balanced-risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Invesco Balanced-risk
The main advantage of trading using opposite Lebenthal Lisanti and Invesco Balanced-risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Invesco Balanced-risk 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 Invesco Balanced-risk will offset losses from the drop in Invesco Balanced-risk's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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