Correlation Between Lebenthal Lisanti and Delaware Small
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Delaware Small 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 Delaware Small 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 Delaware Small Cap, you can compare the effects of market volatilities on Lebenthal Lisanti and Delaware Small 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 Delaware Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Delaware Small.
Diversification Opportunities for Lebenthal Lisanti and Delaware Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Delaware is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Delaware Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Small Cap 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 Delaware Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Small Cap has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Delaware Small go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Delaware Small
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.19 times more return on investment than Delaware Small. However, Lebenthal Lisanti is 1.19 times more volatile than Delaware Small Cap. It trades about 0.09 of its potential returns per unit of risk. Delaware Small Cap is currently generating about 0.1 per unit of risk. If you would invest 1,924 in Lebenthal Lisanti Small on August 28, 2024 and sell it today you would earn a total of 330.00 from holding Lebenthal Lisanti Small or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Delaware Small Cap
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Delaware Small Cap |
Lebenthal Lisanti and Delaware Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Delaware Small
The main advantage of trading using opposite Lebenthal Lisanti and Delaware Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Delaware Small 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 Delaware Small will offset losses from the drop in Delaware Small's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Delaware Small vs. Optimum Small Mid Cap | Delaware Small vs. Ivy Apollo Multi Asset | Delaware Small vs. Optimum Fixed Income | Delaware Small vs. Ivy Asset Strategy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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