Correlation Between Hotchkis Wiley and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Hotchkis Wiley 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 Hotchkis Wiley and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotchkis Wiley Small and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Hotchkis Wiley 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 Hotchkis Wiley with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotchkis Wiley and Lebenthal Lisanti.
Diversification Opportunities for Hotchkis Wiley and Lebenthal Lisanti
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hotchkis and Lebenthal is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hotchkis Wiley Small 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 Hotchkis Wiley 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 Hotchkis Wiley Small 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 Hotchkis Wiley i.e., Hotchkis Wiley and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Hotchkis Wiley and Lebenthal Lisanti
Assuming the 90 days horizon Hotchkis Wiley Small is expected to generate 0.64 times more return on investment than Lebenthal Lisanti. However, Hotchkis Wiley Small is 1.55 times less risky than Lebenthal Lisanti. It trades about 0.04 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about -0.07 per unit of risk. If you would invest 5,484 in Hotchkis Wiley Small on November 7, 2024 and sell it today you would earn a total of 45.00 from holding Hotchkis Wiley Small or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotchkis Wiley Small vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Hotchkis Wiley Small |
| Lebenthal Lisanti Small |
Hotchkis Wiley and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotchkis Wiley and Lebenthal Lisanti
The main advantage of trading using opposite Hotchkis Wiley and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotchkis Wiley 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.| Hotchkis Wiley vs. Hotchkis And Wiley | Hotchkis Wiley vs. Hotchkis Wiley Small | Hotchkis Wiley vs. Dow 2x Strategy | Hotchkis Wiley vs. Rmb Mendon Financial |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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