Correlation Between Lebenthal Lisanti and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref International Equity, you can compare the effects of market volatilities on Lebenthal Lisanti and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Tiaa Cref.
Diversification Opportunities for Lebenthal Lisanti and Tiaa Cref
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lebenthal and Tiaa is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref International has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Tiaa Cref go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Tiaa Cref
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 3.84 times less return on investment than Tiaa Cref. In addition to that, Lebenthal Lisanti is 1.53 times more volatile than Tiaa Cref International Equity. It trades about 0.01 of its total potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.04 per unit of volatility. If you would invest 1,376 in Tiaa Cref International Equity on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Tiaa Cref International Equity or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Tiaa Cref International Equity
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Tiaa Cref International |
Lebenthal Lisanti and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Tiaa Cref
The main advantage of trading using opposite Lebenthal Lisanti and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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