Correlation Between Lebenthal Lisanti and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Elfun Government 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 Elfun Government 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 Elfun Government Money, you can compare the effects of market volatilities on Lebenthal Lisanti and Elfun Government 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 Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Elfun Government.
Diversification Opportunities for Lebenthal Lisanti and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lebenthal and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money 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 Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Elfun Government go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Elfun Government
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 7.7 times more return on investment than Elfun Government. However, Lebenthal Lisanti is 7.7 times more volatile than Elfun Government Money. It trades about 0.07 of its potential returns per unit of risk. Elfun Government Money is currently generating about 0.06 per unit of risk. If you would invest 1,705 in Lebenthal Lisanti Small on November 3, 2024 and sell it today you would earn a total of 433.00 from holding Lebenthal Lisanti Small or generate 25.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Elfun Government Money
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Elfun Government Money |
Lebenthal Lisanti and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Elfun Government
The main advantage of trading using opposite Lebenthal Lisanti and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Elfun Government vs. Enhanced Fixed Income | Elfun Government vs. Calvert International Equity | Elfun Government vs. Smallcap World Fund | Elfun Government vs. Aqr Equity Market |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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