Correlation Between Lebenthal Lisanti and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Ambrus 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 Ambrus 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 Ambrus Core Bond, you can compare the effects of market volatilities on Lebenthal Lisanti and Ambrus 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Ambrus Core.
Diversification Opportunities for Lebenthal Lisanti and Ambrus Core
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lebenthal and Ambrus is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Ambrus Core go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Ambrus Core
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 5.93 times more return on investment than Ambrus Core. However, Lebenthal Lisanti is 5.93 times more volatile than Ambrus Core Bond. It trades about 0.06 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.09 per unit of risk. If you would invest 1,679 in Lebenthal Lisanti Small on October 19, 2024 and sell it today you would earn a total of 491.00 from holding Lebenthal Lisanti Small or generate 29.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Ambrus Core Bond
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Ambrus Core Bond |
Lebenthal Lisanti and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Ambrus Core
The main advantage of trading using opposite Lebenthal Lisanti and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Ambrus 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Ambrus Core vs. Glg Intl Small | Ambrus Core vs. Df Dent Small | Ambrus Core vs. Small Pany Growth | Ambrus 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 Stocks Directory module to find actively traded stocks across global markets.
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