Correlation Between Lebenthal Lisanti and Fidelity Flex
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Fidelity Flex 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 Fidelity Flex 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 Fidelity Flex Freedom, you can compare the effects of market volatilities on Lebenthal Lisanti and Fidelity Flex 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 Fidelity Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Fidelity Flex.
Diversification Opportunities for Lebenthal Lisanti and Fidelity Flex
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lebenthal and Fidelity is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Fidelity Flex Freedom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Flex Freedom 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 Fidelity Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Flex Freedom has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Fidelity Flex go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Fidelity Flex
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 3.31 times more return on investment than Fidelity Flex. However, Lebenthal Lisanti is 3.31 times more volatile than Fidelity Flex Freedom. It trades about 0.11 of its potential returns per unit of risk. Fidelity Flex Freedom is currently generating about 0.17 per unit of risk. If you would invest 2,177 in Lebenthal Lisanti Small on September 14, 2024 and sell it today you would earn a total of 62.00 from holding Lebenthal Lisanti Small or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Fidelity Flex Freedom
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Fidelity Flex Freedom |
Lebenthal Lisanti and Fidelity Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Fidelity Flex
The main advantage of trading using opposite Lebenthal Lisanti and Fidelity Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Fidelity Flex 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 Fidelity Flex will offset losses from the drop in Fidelity Flex's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Fidelity Flex vs. Ep Emerging Markets | Fidelity Flex vs. Transamerica Emerging Markets | Fidelity Flex vs. Artisan Emerging Markets | Fidelity Flex vs. Kinetics Market Opportunities |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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