Correlation Between Lebenthal Lisanti and Siit Global
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Siit Global 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 Siit Global 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 Siit Global Managed, you can compare the effects of market volatilities on Lebenthal Lisanti and Siit Global 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 Siit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Siit Global.
Diversification Opportunities for Lebenthal Lisanti and Siit Global
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lebenthal and Siit is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Siit Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Global Managed 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 Siit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Global Managed has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Siit Global go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Siit Global
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 0.67 times more return on investment than Siit Global. However, Lebenthal Lisanti Small is 1.49 times less risky than Siit Global. It trades about -0.04 of its potential returns per unit of risk. Siit Global Managed is currently generating about -0.3 per unit of risk. If you would invest 2,221 in Lebenthal Lisanti Small on October 10, 2024 and sell it today you would lose (30.00) from holding Lebenthal Lisanti Small or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Siit Global Managed
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Siit Global Managed |
Lebenthal Lisanti and Siit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Siit Global
The main advantage of trading using opposite Lebenthal Lisanti and Siit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Siit Global 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 Siit Global will offset losses from the drop in Siit Global's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Siit Global vs. Vanguard Small Cap Value | Siit Global vs. Heartland Value Plus | Siit Global vs. Queens Road Small | Siit Global vs. Amg River Road |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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