Correlation Between Lebenthal Lisanti and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Dunham Emerging 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 Dunham Emerging 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 Dunham Emerging Markets, you can compare the effects of market volatilities on Lebenthal Lisanti and Dunham Emerging 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 Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Dunham Emerging.
Diversification Opportunities for Lebenthal Lisanti and Dunham Emerging
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lebenthal and Dunham is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Dunham Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Emerging Markets 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 Dunham Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Emerging Markets has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Dunham Emerging go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Dunham Emerging
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.64 times more return on investment than Dunham Emerging. However, Lebenthal Lisanti is 1.64 times more volatile than Dunham Emerging Markets. It trades about 0.03 of its potential returns per unit of risk. Dunham Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 2,121 in Lebenthal Lisanti Small on November 3, 2024 and sell it today you would earn a total of 17.00 from holding Lebenthal Lisanti Small or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Dunham Emerging Markets
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Dunham Emerging Markets |
Lebenthal Lisanti and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Dunham Emerging
The main advantage of trading using opposite Lebenthal Lisanti and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Dunham Emerging 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 Dunham Emerging will offset losses from the drop in Dunham Emerging's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Dunham Emerging vs. Gmo Global Equity | Dunham Emerging vs. Doubleline Core Fixed | Dunham Emerging vs. Small Cap Equity | Dunham Emerging vs. Dws Equity Sector |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |