Correlation Between Kinetics Market and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Kinetics Market 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 Kinetics Market and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Market Opportunities and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Kinetics Market 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 Kinetics Market with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Lebenthal Lisanti.
Diversification Opportunities for Kinetics Market and Lebenthal Lisanti
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Lebenthal is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities 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 Kinetics Market 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 Kinetics Market Opportunities 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 Kinetics Market i.e., Kinetics Market and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Kinetics Market and Lebenthal Lisanti
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 1.16 times more return on investment than Lebenthal Lisanti. However, Kinetics Market is 1.16 times more volatile than Lebenthal Lisanti Small. It trades about 0.1 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.05 per unit of risk. If you would invest 4,400 in Kinetics Market Opportunities on August 28, 2024 and sell it today you would earn a total of 4,552 from holding Kinetics Market Opportunities or generate 103.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Kinetics Market Oppo |
| Lebenthal Lisanti Small |
Kinetics Market and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Lebenthal Lisanti
The main advantage of trading using opposite Kinetics Market and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market 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.| Kinetics Market vs. Vy Blackrock Inflation | Kinetics Market vs. Loomis Sayles Inflation | Kinetics Market vs. Blackrock Inflation Protected | Kinetics Market vs. Schwab Treasury Inflation |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |