Correlation Between Hartford Schroders and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Hartford Schroders and Lebenthal Lisanti 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 Hartford Schroders and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Schroders International and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Hartford Schroders and Lebenthal Lisanti 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 Hartford Schroders with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Schroders and Lebenthal Lisanti.
Diversification Opportunities for Hartford Schroders and Lebenthal Lisanti
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hartford and Lebenthal is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Schroders Internation and Lebenthal Lisanti Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lebenthal Lisanti Small and Hartford Schroders 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 Hartford Schroders International are associated (or correlated) with Lebenthal Lisanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lebenthal Lisanti Small has no effect on the direction of Hartford Schroders i.e., Hartford Schroders and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Hartford Schroders and Lebenthal Lisanti
Assuming the 90 days horizon Hartford Schroders is expected to generate 1.92 times less return on investment than Lebenthal Lisanti. But when comparing it to its historical volatility, Hartford Schroders International is 1.97 times less risky than Lebenthal Lisanti. It trades about 0.06 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,766 in Lebenthal Lisanti Small on November 5, 2024 and sell it today you would earn a total of 372.00 from holding Lebenthal Lisanti Small or generate 21.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Schroders Internation vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Hartford Schroders |
| Lebenthal Lisanti Small |
Hartford Schroders and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Schroders and Lebenthal Lisanti
The main advantage of trading using opposite Hartford Schroders and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Schroders position performs unexpectedly, Lebenthal Lisanti 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 Lebenthal Lisanti will offset losses from the drop in Lebenthal Lisanti's long position.| Hartford Schroders vs. Us Government Securities | Hartford Schroders vs. Eaton Vance E | Hartford Schroders vs. Federated International Strategic | Hartford Schroders vs. Hartford E Equity |
| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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