Correlation Between Lebenthal Lisanti and Miller Income
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Miller Income 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 Miller Income 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 Miller Income Fund, you can compare the effects of market volatilities on Lebenthal Lisanti and Miller Income 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 Miller Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Miller Income.
Diversification Opportunities for Lebenthal Lisanti and Miller Income
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Miller is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Miller Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller 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 Miller Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Income has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Miller Income go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Miller Income
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 5.76 times less return on investment than Miller Income. In addition to that, Lebenthal Lisanti is 1.69 times more volatile than Miller Income Fund. It trades about 0.01 of its total potential returns per unit of risk. Miller Income Fund is currently generating about 0.06 per unit of volatility. If you would invest 906.00 in Miller Income Fund on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Miller Income Fund or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Miller Income Fund
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Miller Income |
Lebenthal Lisanti and Miller Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Miller Income
The main advantage of trading using opposite Lebenthal Lisanti and Miller Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Miller Income 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 Miller Income will offset losses from the drop in Miller Income's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Miller Income vs. Miller Opportunity Trust | Miller Income vs. Miller Income Fund | Miller Income vs. Miller Income Fund | Miller Income vs. Miller Opportunity Trust |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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