Correlation Between Lebenthal Lisanti and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman Socially, you can compare the effects of market volatilities on Lebenthal Lisanti and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Neuberger Berman.
Diversification Opportunities for Lebenthal Lisanti and Neuberger Berman
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Neuberger is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Neuberger Berman Socially in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Socially 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Socially has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Neuberger Berman go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Neuberger Berman
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 3.23 times less return on investment than Neuberger Berman. In addition to that, Lebenthal Lisanti is 2.59 times more volatile than Neuberger Berman Socially. It trades about 0.01 of its total potential returns per unit of risk. Neuberger Berman Socially is currently generating about 0.05 per unit of volatility. If you would invest 5,133 in Neuberger Berman Socially on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Neuberger Berman Socially or generate 0.56% 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. Neuberger Berman Socially
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Neuberger Berman Socially |
Lebenthal Lisanti and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Neuberger Berman
The main advantage of trading using opposite Lebenthal Lisanti and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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