Correlation Between Lebenthal Lisanti and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Calvert Global 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 Calvert Global 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 Calvert Global Energy, you can compare the effects of market volatilities on Lebenthal Lisanti and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Calvert Global.
Diversification Opportunities for Lebenthal Lisanti and Calvert Global
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lebenthal and Calvert is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Calvert Global go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Calvert Global
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 7.66 times less return on investment than Calvert Global. In addition to that, Lebenthal Lisanti is 2.36 times more volatile than Calvert Global Energy. It trades about 0.01 of its total potential returns per unit of risk. Calvert Global Energy is currently generating about 0.12 per unit of volatility. If you would invest 1,091 in Calvert Global Energy on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Calvert Global Energy or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Calvert Global Energy
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Calvert Global Energy |
Lebenthal Lisanti and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Calvert Global
The main advantage of trading using opposite Lebenthal Lisanti and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global'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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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