Correlation Between Lebenthal Lisanti and Invesco Steelpath
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Invesco Steelpath 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 Invesco Steelpath 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 Invesco Steelpath Mlp, you can compare the effects of market volatilities on Lebenthal Lisanti and Invesco Steelpath 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 Invesco Steelpath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Invesco Steelpath.
Diversification Opportunities for Lebenthal Lisanti and Invesco Steelpath
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lebenthal and Invesco is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Invesco Steelpath Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Steelpath Mlp 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 Invesco Steelpath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Steelpath Mlp has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Invesco Steelpath go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Invesco Steelpath
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 1.7 times less return on investment than Invesco Steelpath. In addition to that, Lebenthal Lisanti is 1.24 times more volatile than Invesco Steelpath Mlp. It trades about 0.06 of its total potential returns per unit of risk. Invesco Steelpath Mlp is currently generating about 0.13 per unit of volatility. If you would invest 319.00 in Invesco Steelpath Mlp on September 14, 2024 and sell it today you would earn a total of 286.00 from holding Invesco Steelpath Mlp or generate 89.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Invesco Steelpath Mlp
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Invesco Steelpath Mlp |
Lebenthal Lisanti and Invesco Steelpath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Invesco Steelpath
The main advantage of trading using opposite Lebenthal Lisanti and Invesco Steelpath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Invesco Steelpath 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 Invesco Steelpath will offset losses from the drop in Invesco Steelpath's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Invesco Steelpath vs. Lebenthal Lisanti Small | Invesco Steelpath vs. Siit Small Mid | Invesco Steelpath vs. Champlain Small | Invesco Steelpath vs. Df Dent Small |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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