Correlation Between Lebenthal Lisanti and Deutsche Core
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Deutsche Core 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 Deutsche Core 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 Deutsche E Equity, you can compare the effects of market volatilities on Lebenthal Lisanti and Deutsche Core 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 Deutsche Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Deutsche Core.
Diversification Opportunities for Lebenthal Lisanti and Deutsche Core
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lebenthal and Deutsche is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Deutsche E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche E Equity 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 Deutsche Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche E Equity has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Deutsche Core go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Deutsche Core
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 0.75 times more return on investment than Deutsche Core. However, Lebenthal Lisanti Small is 1.34 times less risky than Deutsche Core. It trades about -0.06 of its potential returns per unit of risk. Deutsche E Equity is currently generating about -0.27 per unit of risk. If you would invest 2,206 in Lebenthal Lisanti Small on October 11, 2024 and sell it today you would lose (46.00) from holding Lebenthal Lisanti Small or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Deutsche E Equity
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Deutsche E Equity |
Lebenthal Lisanti and Deutsche Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Deutsche Core
The main advantage of trading using opposite Lebenthal Lisanti and Deutsche Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Deutsche Core 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 Deutsche Core will offset losses from the drop in Deutsche Core's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Deutsche Core vs. Franklin Small Cap | Deutsche Core vs. Ab Small Cap | Deutsche Core vs. Lebenthal Lisanti 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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