Correlation Between Lebenthal Lisanti and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Strategic, you can compare the effects of market volatilities on Lebenthal Lisanti and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Goldman Sachs.
Diversification Opportunities for Lebenthal Lisanti and Goldman Sachs
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lebenthal and Goldman is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Goldman Sachs Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Strategic 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Strategic has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Goldman Sachs go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Goldman Sachs
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 8.31 times more return on investment than Goldman Sachs. However, Lebenthal Lisanti is 8.31 times more volatile than Goldman Sachs Strategic. It trades about 0.07 of its potential returns per unit of risk. Goldman Sachs Strategic is currently generating about 0.17 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Goldman Sachs Strategic
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Goldman Sachs Strategic |
Lebenthal Lisanti and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Goldman Sachs
The main advantage of trading using opposite Lebenthal Lisanti and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Goldman Sachs vs. Vanguard Energy Index | Goldman Sachs vs. Fidelity Advisor Energy | Goldman Sachs vs. Transamerica Mlp Energy | Goldman Sachs vs. Clearbridge Energy Mlp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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