Correlation Between Lebenthal Lisanti and Pgim Esg
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Pgim Esg 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 Pgim Esg 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 Pgim Esg High, you can compare the effects of market volatilities on Lebenthal Lisanti and Pgim Esg 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 Pgim Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Pgim Esg.
Diversification Opportunities for Lebenthal Lisanti and Pgim Esg
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lebenthal and Pgim is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Pgim Esg High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Esg High 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 Pgim Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Esg High has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Pgim Esg go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Pgim Esg
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 8.66 times more return on investment than Pgim Esg. However, Lebenthal Lisanti is 8.66 times more volatile than Pgim Esg High. It trades about 0.03 of its potential returns per unit of risk. Pgim Esg High is currently generating about 0.24 per unit of risk. If you would invest 2,121 in Lebenthal Lisanti Small on November 3, 2024 and sell it today you would earn a total of 17.00 from holding Lebenthal Lisanti Small or generate 0.8% 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. Pgim Esg High
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Pgim Esg High |
Lebenthal Lisanti and Pgim Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Pgim Esg
The main advantage of trading using opposite Lebenthal Lisanti and Pgim Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Pgim Esg 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 Pgim Esg will offset losses from the drop in Pgim Esg's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Pgim Esg vs. Us Vector Equity | Pgim Esg vs. Nuveen Core Equity | Pgim Esg vs. Old Westbury Fixed | Pgim Esg vs. Gmo Global Equity |
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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