Correlation Between Lkcm Balanced and Boston Trust
Can any of the company-specific risk be diversified away by investing in both Lkcm Balanced and Boston Trust 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 Lkcm Balanced and Boston Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Balanced Fund and Boston Trust Asset, you can compare the effects of market volatilities on Lkcm Balanced and Boston Trust 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 Lkcm Balanced with a short position of Boston Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Balanced and Boston Trust.
Diversification Opportunities for Lkcm Balanced and Boston Trust
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Lkcm and Boston is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Balanced Fund and Boston Trust Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Trust Asset and Lkcm Balanced 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 Lkcm Balanced Fund are associated (or correlated) with Boston Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Trust Asset has no effect on the direction of Lkcm Balanced i.e., Lkcm Balanced and Boston Trust go up and down completely randomly.
Pair Corralation between Lkcm Balanced and Boston Trust
Assuming the 90 days horizon Lkcm Balanced Fund is expected to generate 0.89 times more return on investment than Boston Trust. However, Lkcm Balanced Fund is 1.13 times less risky than Boston Trust. It trades about 0.26 of its potential returns per unit of risk. Boston Trust Asset is currently generating about 0.21 per unit of risk. If you would invest 2,873 in Lkcm Balanced Fund on August 30, 2024 and sell it today you would earn a total of 87.00 from holding Lkcm Balanced Fund or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Balanced Fund vs. Boston Trust Asset
Performance |
| Timeline |
| Lkcm Balanced |
| Boston Trust Asset |
Lkcm Balanced and Boston Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Balanced and Boston Trust
The main advantage of trading using opposite Lkcm Balanced and Boston Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Balanced position performs unexpectedly, Boston Trust 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 Boston Trust will offset losses from the drop in Boston Trust's long position.| Lkcm Balanced vs. Mairs Power Balanced | Lkcm Balanced vs. Lkcm Equity Fund | Lkcm Balanced vs. Boston Trust Asset | Lkcm Balanced vs. Value Line Asset |
| Boston Trust vs. Walden Asset Management | Boston Trust vs. Boston Trust Midcap | Boston Trust vs. Boston Trust Equity | Boston Trust vs. Boston Trust Small |
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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