Correlation Between Cardinal Small and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Cardinal Small and Lebenthal Lisanti 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 Cardinal Small and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Small Cap and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Cardinal Small and Lebenthal Lisanti 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 Cardinal Small with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Small and Lebenthal Lisanti.
Diversification Opportunities for Cardinal Small and Lebenthal Lisanti
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cardinal and Lebenthal is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Small Cap and Lebenthal Lisanti Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lebenthal Lisanti Small and Cardinal Small 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 Cardinal Small Cap are associated (or correlated) with Lebenthal Lisanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lebenthal Lisanti Small has no effect on the direction of Cardinal Small i.e., Cardinal Small and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Cardinal Small and Lebenthal Lisanti
If you would invest 2,098 in Lebenthal Lisanti Small on September 19, 2024 and sell it today you would earn a total of 138.00 from holding Lebenthal Lisanti Small or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Small Cap vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Cardinal Small Cap |
| Lebenthal Lisanti Small |
Cardinal Small and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Small and Lebenthal Lisanti
The main advantage of trading using opposite Cardinal Small and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Small position performs unexpectedly, Lebenthal Lisanti 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 Lebenthal Lisanti will offset losses from the drop in Lebenthal Lisanti's long position.| Cardinal Small vs. Eventide Healthcare Life | Cardinal Small vs. Prudential Health Sciences | Cardinal Small vs. Fidelity Advisor Health | Cardinal Small vs. Delaware Healthcare Fund |
| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap | Lebenthal Lisanti vs. Aquagold International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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