Correlation Between Delaware Small and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Delaware 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 Delaware 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 Delaware Small Cap and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Delaware 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 Delaware Small with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Small and Lebenthal Lisanti.
Diversification Opportunities for Delaware Small and Lebenthal Lisanti
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delaware and Lebenthal is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Delaware 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 Delaware 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 Delaware 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 Delaware Small i.e., Delaware Small and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Delaware Small and Lebenthal Lisanti
Assuming the 90 days horizon Delaware Small is expected to generate 1.02 times less return on investment than Lebenthal Lisanti. In addition to that, Delaware Small is 1.01 times more volatile than Lebenthal Lisanti Small. It trades about 0.23 of its total potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.23 per unit of volatility. If you would invest 2,078 in Lebenthal Lisanti Small on August 29, 2024 and sell it today you would earn a total of 176.00 from holding Lebenthal Lisanti Small or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Small Cap vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Delaware Small Cap |
| Lebenthal Lisanti Small |
Delaware Small and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Small and Lebenthal Lisanti
The main advantage of trading using opposite Delaware Small and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware 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.| Delaware Small vs. Optimum Small Mid Cap | Delaware Small vs. Ivy Apollo Multi Asset | Delaware Small vs. Optimum Fixed Income | Delaware Small vs. Ivy Asset Strategy |
| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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