Correlation Between Lebenthal Lisanti and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Mainstay Mackay 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 Mainstay Mackay 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 Mainstay Mackay Tax, you can compare the effects of market volatilities on Lebenthal Lisanti and Mainstay Mackay 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 Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Mainstay Mackay.
Diversification Opportunities for Lebenthal Lisanti and Mainstay Mackay
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lebenthal and Mainstay is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Mainstay Mackay Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Tax 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 Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Tax has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Mainstay Mackay
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 5.88 times more return on investment than Mainstay Mackay. However, Lebenthal Lisanti is 5.88 times more volatile than Mainstay Mackay Tax. It trades about 0.1 of its potential returns per unit of risk. Mainstay Mackay Tax is currently generating about -0.02 per unit of risk. If you would invest 1,803 in Lebenthal Lisanti Small on November 3, 2024 and sell it today you would earn a total of 335.00 from holding Lebenthal Lisanti Small or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Mainstay Mackay Tax
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Mainstay Mackay Tax |
Lebenthal Lisanti and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Mainstay Mackay
The main advantage of trading using opposite Lebenthal Lisanti and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Mainstay Mackay 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 Mainstay Mackay will offset losses from the drop in Mainstay Mackay's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Mainstay Mackay vs. Mainstay Sp 500 | Mainstay Mackay vs. Mainstay Balanced Fund | Mainstay Mackay vs. Mainstay Balanced Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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