Correlation Between Lkcm Small-mid and Lkcm Fixed
Can any of the company-specific risk be diversified away by investing in both Lkcm Small-mid and Lkcm Fixed 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 Fixed 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 Fixed Income, you can compare the effects of market volatilities on Lkcm Small-mid and Lkcm Fixed 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 Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Small-mid and Lkcm Fixed.
Diversification Opportunities for Lkcm Small-mid and Lkcm Fixed
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lkcm and Lkcm is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Small Mid Cap and Lkcm Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Fixed Income 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 Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Fixed Income has no effect on the direction of Lkcm Small-mid i.e., Lkcm Small-mid and Lkcm Fixed go up and down completely randomly.
Pair Corralation between Lkcm Small-mid and Lkcm Fixed
Assuming the 90 days horizon Lkcm Small Mid Cap is expected to generate 6.35 times more return on investment than Lkcm Fixed. However, Lkcm Small-mid is 6.35 times more volatile than Lkcm Fixed Income. It trades about 0.4 of its potential returns per unit of risk. Lkcm Fixed Income is currently generating about 0.09 per unit of risk. If you would invest 1,107 in Lkcm Small Mid Cap on August 30, 2024 and sell it today you would earn a total of 122.00 from holding Lkcm Small Mid Cap or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Small Mid Cap vs. Lkcm Fixed Income
Performance |
| Timeline |
| Lkcm Small Mid |
| Lkcm Fixed Income |
Lkcm Small-mid and Lkcm Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Small-mid and Lkcm Fixed
The main advantage of trading using opposite Lkcm Small-mid and Lkcm Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Small-mid position performs unexpectedly, Lkcm Fixed 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 Fixed will offset losses from the drop in Lkcm Fixed's long position.| Lkcm Small-mid vs. Great West Loomis Sayles | Lkcm Small-mid vs. Applied Finance Explorer | Lkcm Small-mid vs. Fpa Queens Road | Lkcm Small-mid vs. Pace Smallmedium Value |
| Lkcm Fixed vs. Gmo Resources | Lkcm Fixed vs. Goldman Sachs Mlp | Lkcm Fixed vs. Firsthand Alternative Energy | Lkcm Fixed vs. Oil Gas Ultrasector |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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