Correlation Between Lkcm Small-mid and Lkcm Aquinas
Can any of the company-specific risk be diversified away by investing in both Lkcm Small-mid and Lkcm Aquinas 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 Small-mid and Lkcm Aquinas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Small Mid Cap and Lkcm Aquinas Catholic, you can compare the effects of market volatilities on Lkcm Small-mid and Lkcm Aquinas 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 Small-mid with a short position of Lkcm Aquinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Small-mid and Lkcm Aquinas.
Diversification Opportunities for Lkcm Small-mid and Lkcm Aquinas
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lkcm and Lkcm is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Small Mid Cap and Lkcm Aquinas Catholic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Aquinas Catholic and Lkcm Small-mid 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 Small Mid Cap are associated (or correlated) with Lkcm Aquinas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Aquinas Catholic has no effect on the direction of Lkcm Small-mid i.e., Lkcm Small-mid and Lkcm Aquinas go up and down completely randomly.
Pair Corralation between Lkcm Small-mid and Lkcm Aquinas
Assuming the 90 days horizon Lkcm Small Mid Cap is expected to generate 1.37 times more return on investment than Lkcm Aquinas. However, Lkcm Small-mid is 1.37 times more volatile than Lkcm Aquinas Catholic. It trades about 0.15 of its potential returns per unit of risk. Lkcm Aquinas Catholic is currently generating about 0.1 per unit of risk. If you would invest 1,007 in Lkcm Small Mid Cap on August 26, 2024 and sell it today you would earn a total of 222.00 from holding Lkcm Small Mid Cap or generate 22.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Small Mid Cap vs. Lkcm Aquinas Catholic
Performance |
| Timeline |
| Lkcm Small Mid |
| Lkcm Aquinas Catholic |
Lkcm Small-mid and Lkcm Aquinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Small-mid and Lkcm Aquinas
The main advantage of trading using opposite Lkcm Small-mid and Lkcm Aquinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Small-mid position performs unexpectedly, Lkcm Aquinas 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 Aquinas will offset losses from the drop in Lkcm Aquinas' long position.| Lkcm Small-mid vs. Lkcm Aquinas Catholic | Lkcm Small-mid vs. Lkcm Equity Fund | Lkcm Small-mid vs. Lkcm Fixed Income | Lkcm Small-mid vs. Lkcm International Equity |
| Lkcm Aquinas vs. Short Oil Gas | Lkcm Aquinas vs. Dreyfus Natural Resources | Lkcm Aquinas vs. Fidelity Advisor Energy | Lkcm Aquinas vs. Alpsalerian Energy Infrastructure |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |