Correlation Between Lkcm Balanced and Lkcm International
Can any of the company-specific risk be diversified away by investing in both Lkcm Balanced and Lkcm International 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 Lkcm International 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 Lkcm International Equity, you can compare the effects of market volatilities on Lkcm Balanced and Lkcm International 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 Lkcm International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Balanced and Lkcm International.
Diversification Opportunities for Lkcm Balanced and Lkcm International
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lkcm and Lkcm is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Balanced Fund and Lkcm International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm International Equity 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 Lkcm International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm International Equity has no effect on the direction of Lkcm Balanced i.e., Lkcm Balanced and Lkcm International go up and down completely randomly.
Pair Corralation between Lkcm Balanced and Lkcm International
Assuming the 90 days horizon Lkcm Balanced Fund is expected to generate 0.66 times more return on investment than Lkcm International. However, Lkcm Balanced Fund is 1.52 times less risky than Lkcm International. It trades about 0.22 of its potential returns per unit of risk. Lkcm International Equity is currently generating about -0.11 per unit of risk. If you would invest 2,870 in Lkcm Balanced Fund on August 26, 2024 and sell it today you would earn a total of 73.00 from holding Lkcm Balanced Fund or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Balanced Fund vs. Lkcm International Equity
Performance |
| Timeline |
| Lkcm Balanced |
| Lkcm International Equity |
Lkcm Balanced and Lkcm International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Balanced and Lkcm International
The main advantage of trading using opposite Lkcm Balanced and Lkcm International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Balanced position performs unexpectedly, Lkcm International 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 Lkcm International will offset losses from the drop in Lkcm International'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 |
| Lkcm International vs. Lkcm Aquinas Catholic | Lkcm International vs. Lkcm Balanced Fund | Lkcm International vs. Lkcm Equity Fund | Lkcm International vs. Lkcm Fixed Income |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |