Correlation Between Lebenthal Lisanti and New Perspective
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and New Perspective 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 Lebenthal Lisanti and New Perspective into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lebenthal Lisanti Small and New Perspective Fund, you can compare the effects of market volatilities on Lebenthal Lisanti and New Perspective 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 Lebenthal Lisanti with a short position of New Perspective. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and New Perspective.
Diversification Opportunities for Lebenthal Lisanti and New Perspective
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lebenthal and New is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and New Perspective Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Perspective and Lebenthal Lisanti 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 Lebenthal Lisanti Small are associated (or correlated) with New Perspective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Perspective has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and New Perspective go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and New Perspective
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.92 times more return on investment than New Perspective. However, Lebenthal Lisanti is 1.92 times more volatile than New Perspective Fund. It trades about 0.18 of its potential returns per unit of risk. New Perspective Fund is currently generating about 0.14 per unit of risk. If you would invest 1,929 in Lebenthal Lisanti Small on June 12, 2025 and sell it today you would earn a total of 270.00 from holding Lebenthal Lisanti Small or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. New Perspective Fund
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| New Perspective |
Lebenthal Lisanti and New Perspective Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and New Perspective
The main advantage of trading using opposite Lebenthal Lisanti and New Perspective positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, New Perspective 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 New Perspective will offset losses from the drop in New Perspective's long position.| Lebenthal Lisanti vs. Aberdeen Small Cap | Lebenthal Lisanti vs. Needham Aggressive Growth | Lebenthal Lisanti vs. Morningstar Unconstrained Allocation | Lebenthal Lisanti vs. Thrivent High Yield |
| New Perspective vs. Ab Global Bond | New Perspective vs. Dreyfusstandish Global Fixed | New Perspective vs. Gamco Global Opportunity | New Perspective vs. Alliancebernstein Global Highome |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |