Correlation Between Lebenthal Lisanti and Sit Small
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Sit Small 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 Sit Small 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 Sit Small Cap, you can compare the effects of market volatilities on Lebenthal Lisanti and Sit Small 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 Sit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Sit Small.
Diversification Opportunities for Lebenthal Lisanti and Sit Small
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Sit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Sit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Small Cap 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 Sit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Small Cap has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Sit Small go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Sit Small
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.58 times more return on investment than Sit Small. However, Lebenthal Lisanti is 1.58 times more volatile than Sit Small Cap. It trades about 0.01 of its potential returns per unit of risk. Sit Small Cap is currently generating about -0.09 per unit of risk. If you would invest 2,206 in Lebenthal Lisanti Small on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Lebenthal Lisanti Small or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Sit Small Cap
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Sit Small Cap |
Lebenthal Lisanti and Sit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Sit Small
The main advantage of trading using opposite Lebenthal Lisanti and Sit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Sit Small 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 Sit Small will offset losses from the drop in Sit Small's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Sit Small vs. Champlain Small | Sit Small vs. Lebenthal Lisanti Small | Sit Small vs. Guidemark Smallmid Cap | Sit Small vs. Siit Small Mid |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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