Correlation Between Lkcm Fixed and Lkcm Balanced
Can any of the company-specific risk be diversified away by investing in both Lkcm Fixed and Lkcm Balanced 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 Fixed and Lkcm Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Fixed Income and Lkcm Balanced Fund, you can compare the effects of market volatilities on Lkcm Fixed and Lkcm Balanced 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 Fixed with a short position of Lkcm Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Fixed and Lkcm Balanced.
Diversification Opportunities for Lkcm Fixed and Lkcm Balanced
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lkcm and Lkcm is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Fixed Income and Lkcm Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Balanced and Lkcm Fixed 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 Fixed Income are associated (or correlated) with Lkcm Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Balanced has no effect on the direction of Lkcm Fixed i.e., Lkcm Fixed and Lkcm Balanced go up and down completely randomly.
Pair Corralation between Lkcm Fixed and Lkcm Balanced
Assuming the 90 days horizon Lkcm Fixed is expected to generate 1.9 times less return on investment than Lkcm Balanced. But when comparing it to its historical volatility, Lkcm Fixed Income is 2.65 times less risky than Lkcm Balanced. It trades about 0.08 of its potential returns per unit of risk. Lkcm Balanced Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,463 in Lkcm Balanced Fund on November 2, 2024 and sell it today you would earn a total of 393.00 from holding Lkcm Balanced Fund or generate 15.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Fixed Income vs. Lkcm Balanced Fund
Performance |
| Timeline |
| Lkcm Fixed Income |
| Lkcm Balanced |
Lkcm Fixed and Lkcm Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Fixed and Lkcm Balanced
The main advantage of trading using opposite Lkcm Fixed and Lkcm Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Fixed position performs unexpectedly, Lkcm Balanced 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 Balanced will offset losses from the drop in Lkcm Balanced's long position.| Lkcm Fixed vs. Lkcm Aquinas Catholic | Lkcm Fixed vs. Lkcm Balanced Fund | Lkcm Fixed vs. Lkcm Equity Fund | Lkcm Fixed vs. Lkcm International Equity |
| Lkcm Balanced vs. Mairs Power Balanced | Lkcm Balanced vs. Lkcm Equity Fund | Lkcm Balanced vs. Boston Trust Asset | Lkcm Balanced vs. Value Line Asset |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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