Correlation Between Lebenthal Lisanti and Invesco International
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Invesco International 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 Invesco International 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 Invesco International Small, you can compare the effects of market volatilities on Lebenthal Lisanti and Invesco International 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 Invesco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Invesco International.
Diversification Opportunities for Lebenthal Lisanti and Invesco International
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lebenthal and Invesco is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Invesco International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco International 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 Invesco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco International has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Invesco International go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Invesco International
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.94 times more return on investment than Invesco International. However, Lebenthal Lisanti is 1.94 times more volatile than Invesco International Small. It trades about 0.08 of its potential returns per unit of risk. Invesco International Small is currently generating about 0.04 per unit of risk. If you would invest 1,565 in Lebenthal Lisanti Small on September 12, 2024 and sell it today you would earn a total of 656.00 from holding Lebenthal Lisanti Small or generate 41.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Invesco International Small
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Invesco International |
Lebenthal Lisanti and Invesco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Invesco International
The main advantage of trading using opposite Lebenthal Lisanti and Invesco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Invesco International 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 Invesco International will offset losses from the drop in Invesco International's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Invesco International vs. Small Pany Growth | Invesco International vs. Ab Small Cap | Invesco International vs. Sp Smallcap 600 | Invesco International vs. Lebenthal Lisanti Small |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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