Correlation Between Lebenthal Lisanti and Vy Columbia
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Vy Columbia 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 Vy Columbia 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 Vy Columbia Small, you can compare the effects of market volatilities on Lebenthal Lisanti and Vy Columbia 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 Vy Columbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Vy Columbia.
Diversification Opportunities for Lebenthal Lisanti and Vy Columbia
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and VYRDX is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Vy Columbia Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Columbia Small 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 Vy Columbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Columbia Small has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Vy Columbia go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Vy Columbia
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.12 times more return on investment than Vy Columbia. However, Lebenthal Lisanti is 1.12 times more volatile than Vy Columbia Small. It trades about 0.05 of its potential returns per unit of risk. Vy Columbia Small is currently generating about 0.05 per unit of risk. If you would invest 1,664 in Lebenthal Lisanti Small on August 27, 2024 and sell it today you would earn a total of 565.00 from holding Lebenthal Lisanti Small or generate 33.95% 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. Vy Columbia Small
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Vy Columbia Small |
Lebenthal Lisanti and Vy Columbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Vy Columbia
The main advantage of trading using opposite Lebenthal Lisanti and Vy Columbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Vy Columbia 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 Vy Columbia will offset losses from the drop in Vy Columbia's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
| Vy Columbia vs. Voya Bond Index | Vy Columbia vs. Voya Bond Index | Vy Columbia vs. Voya Limited Maturity | Vy Columbia vs. Voya Limited Maturity |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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