Correlation Between Lebenthal Lisanti and Pender Real
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Pender Real 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 Pender Real 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 Pender Real Estate, you can compare the effects of market volatilities on Lebenthal Lisanti and Pender Real 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 Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Pender Real.
Diversification Opportunities for Lebenthal Lisanti and Pender Real
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lebenthal and Pender is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate 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 Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Pender Real go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Pender Real
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 8.66 times more return on investment than Pender Real. However, Lebenthal Lisanti is 8.66 times more volatile than Pender Real Estate. It trades about 0.09 of its potential returns per unit of risk. Pender Real Estate is currently generating about 0.2 per unit of risk. If you would invest 1,531 in Lebenthal Lisanti Small on October 21, 2024 and sell it today you would earn a total of 648.00 from holding Lebenthal Lisanti Small or generate 42.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Pender Real Estate
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Pender Real Estate |
Lebenthal Lisanti and Pender Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Pender Real
The main advantage of trading using opposite Lebenthal Lisanti and Pender Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Pender Real 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 Pender Real will offset losses from the drop in Pender Real's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Pender Real vs. Ab Small Cap | Pender Real vs. Lebenthal Lisanti Small | Pender Real vs. Artisan Small Cap | Pender Real vs. Franklin Small Cap |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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