Correlation Between Lebenthal Lisanti and Strategic Advisers
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Strategic Advisers 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 Strategic Advisers 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 Strategic Advisers Income, you can compare the effects of market volatilities on Lebenthal Lisanti and Strategic Advisers 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 Strategic Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Strategic Advisers.
Diversification Opportunities for Lebenthal Lisanti and Strategic Advisers
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lebenthal and Strategic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Strategic Advisers Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Advisers Income 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 Strategic Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Advisers Income has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Strategic Advisers go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Strategic Advisers
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to under-perform the Strategic Advisers. In addition to that, Lebenthal Lisanti is 8.41 times more volatile than Strategic Advisers Income. It trades about -0.04 of its total potential returns per unit of risk. Strategic Advisers Income is currently generating about -0.3 per unit of volatility. If you would invest 887.00 in Strategic Advisers Income on October 10, 2024 and sell it today you would lose (10.00) from holding Strategic Advisers Income or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Strategic Advisers Income
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Strategic Advisers Income |
Lebenthal Lisanti and Strategic Advisers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Strategic Advisers
The main advantage of trading using opposite Lebenthal Lisanti and Strategic Advisers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Strategic Advisers 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 Strategic Advisers will offset losses from the drop in Strategic Advisers' long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Strategic Advisers vs. Franklin Vertible Securities | Strategic Advisers vs. Mainstay Vertible Fund | Strategic Advisers vs. Invesco Vertible Securities | Strategic Advisers vs. Advent Claymore Convertible |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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