Correlation Between Lebenthal Lisanti and T Rowe
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and T Rowe 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 T Rowe 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 T Rowe Price, you can compare the effects of market volatilities on Lebenthal Lisanti and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and T Rowe.
Diversification Opportunities for Lebenthal Lisanti and T Rowe
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lebenthal and TEIMX is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and T Rowe go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and T Rowe
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to under-perform the T Rowe. In addition to that, Lebenthal Lisanti is 3.21 times more volatile than T Rowe Price. It trades about -0.04 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.16 per unit of volatility. If you would invest 458.00 in T Rowe Price on November 4, 2024 and sell it today you would earn a total of 7.00 from holding T Rowe Price or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. T Rowe Price
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| T Rowe Price |
Lebenthal Lisanti and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and T Rowe
The main advantage of trading using opposite Lebenthal Lisanti and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| T Rowe vs. Davis Financial Fund | T Rowe vs. Transamerica Financial Life | T Rowe vs. Rmb Mendon Financial | T Rowe vs. John Hancock Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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