Correlation Between Eagle Small and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Eagle 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 Eagle 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 Eagle Small Cap and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Eagle 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 Eagle Small with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Lebenthal Lisanti.
Diversification Opportunities for Eagle Small and Lebenthal Lisanti
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Eagle and Lebenthal is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Eagle 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 Eagle 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 Eagle 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 Eagle Small i.e., Eagle Small and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Eagle Small and Lebenthal Lisanti
Assuming the 90 days horizon Eagle Small is expected to generate 1.03 times less return on investment than Lebenthal Lisanti. But when comparing it to its historical volatility, Eagle Small Cap is 1.13 times less risky than Lebenthal Lisanti. It trades about 0.23 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,078 in Lebenthal Lisanti Small on August 27, 2024 and sell it today you would earn a total of 151.00 from holding Lebenthal Lisanti Small or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Eagle Small Cap |
| Lebenthal Lisanti Small |
Eagle Small and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Lebenthal Lisanti
The main advantage of trading using opposite Eagle Small and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle 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.| Eagle Small vs. Pgim Jennison Technology | Eagle Small vs. Janus Global Technology | Eagle Small vs. Towpath Technology | Eagle Small vs. Biotechnology Ultrasector Profund |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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