Correlation Between Lebenthal Lisanti and Hartford Schroders
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Hartford Schroders 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 Hartford Schroders 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 Hartford Schroders International, you can compare the effects of market volatilities on Lebenthal Lisanti and Hartford Schroders 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 Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Hartford Schroders.
Diversification Opportunities for Lebenthal Lisanti and Hartford Schroders
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lebenthal and Hartford is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Hartford Schroders Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders 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 Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Hartford Schroders go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Hartford Schroders
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.97 times more return on investment than Hartford Schroders. However, Lebenthal Lisanti is 1.97 times more volatile than Hartford Schroders International. It trades about 0.06 of its potential returns per unit of risk. Hartford Schroders International is currently generating about 0.06 per unit of risk. If you would invest 1,766 in Lebenthal Lisanti Small on November 5, 2024 and sell it today you would earn a total of 372.00 from holding Lebenthal Lisanti Small or generate 21.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Hartford Schroders Internation
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Hartford Schroders |
Lebenthal Lisanti and Hartford Schroders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Hartford Schroders
The main advantage of trading using opposite Lebenthal Lisanti and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Hartford Schroders 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 Hartford Schroders will offset losses from the drop in Hartford Schroders' long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Hartford Schroders vs. Us Government Securities | Hartford Schroders vs. Eaton Vance E | Hartford Schroders vs. Federated International Strategic | Hartford Schroders vs. Hartford E 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |