Correlation Between Vanguard Small-cap and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Vanguard Small-cap 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 Vanguard Small-cap and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Small Cap Growth and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Vanguard Small-cap 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 Vanguard Small-cap with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small-cap and Lebenthal Lisanti.
Diversification Opportunities for Vanguard Small-cap and Lebenthal Lisanti
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Lebenthal is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Growth 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 Vanguard Small-cap 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 Vanguard Small Cap Growth 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 Vanguard Small-cap i.e., Vanguard Small-cap and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Vanguard Small-cap and Lebenthal Lisanti
Assuming the 90 days horizon Vanguard Small Cap Growth is expected to generate 0.77 times more return on investment than Lebenthal Lisanti. However, Vanguard Small Cap Growth is 1.3 times less risky than Lebenthal Lisanti. It trades about 0.32 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.15 per unit of risk. If you would invest 7,531 in Vanguard Small Cap Growth on August 24, 2024 and sell it today you would earn a total of 704.00 from holding Vanguard Small Cap Growth or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vanguard Small Cap Growth vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Vanguard Small Cap |
| Lebenthal Lisanti Small |
Vanguard Small-cap and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small-cap and Lebenthal Lisanti
The main advantage of trading using opposite Vanguard Small-cap and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small-cap 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.| Vanguard Small-cap vs. Hennessy Bp Energy | Vanguard Small-cap vs. Goehring Rozencwajg Resources | Vanguard Small-cap vs. Firsthand Alternative Energy | Vanguard Small-cap vs. World Energy Fund |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |