Correlation Between Lebenthal Lisanti and Columbia Floating
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Columbia Floating 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 Columbia Floating 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 Columbia Floating Rate, you can compare the effects of market volatilities on Lebenthal Lisanti and Columbia Floating 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 Columbia Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Columbia Floating.
Diversification Opportunities for Lebenthal Lisanti and Columbia Floating
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lebenthal and Columbia is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Columbia Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Floating Rate 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 Columbia Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Floating Rate has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Columbia Floating go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Columbia Floating
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 7.57 times more return on investment than Columbia Floating. However, Lebenthal Lisanti is 7.57 times more volatile than Columbia Floating Rate. It trades about 0.06 of its potential returns per unit of risk. Columbia Floating Rate is currently generating about 0.22 per unit of risk. If you would invest 1,591 in Lebenthal Lisanti Small on September 12, 2024 and sell it today you would earn a total of 630.00 from holding Lebenthal Lisanti Small or generate 39.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.18% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Columbia Floating Rate
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Columbia Floating Rate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Lebenthal Lisanti and Columbia Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Columbia Floating
The main advantage of trading using opposite Lebenthal Lisanti and Columbia Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Columbia Floating 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 Columbia Floating will offset losses from the drop in Columbia Floating's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Columbia Floating vs. Sp Smallcap 600 | Columbia Floating vs. Lebenthal Lisanti Small | Columbia Floating vs. Ab Small Cap | Columbia Floating vs. Ab Small 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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