Correlation Between Lebenthal Lisanti and The Dreyfus
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and The Dreyfus 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 The Dreyfus 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 The Dreyfus Sustainable, you can compare the effects of market volatilities on Lebenthal Lisanti and The Dreyfus 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 The Dreyfus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and The Dreyfus.
Diversification Opportunities for Lebenthal Lisanti and The Dreyfus
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and The is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and The Dreyfus Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Dreyfus Sustainable 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 The Dreyfus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Dreyfus Sustainable has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and The Dreyfus go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and The Dreyfus
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.92 times more return on investment than The Dreyfus. However, Lebenthal Lisanti is 1.92 times more volatile than The Dreyfus Sustainable. It trades about 0.21 of its potential returns per unit of risk. The Dreyfus Sustainable is currently generating about 0.22 per unit of risk. If you would invest 1,886 in Lebenthal Lisanti Small on May 31, 2025 and sell it today you would earn a total of 327.00 from holding Lebenthal Lisanti Small or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. The Dreyfus Sustainable
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| The Dreyfus Sustainable |
Lebenthal Lisanti and The Dreyfus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and The Dreyfus
The main advantage of trading using opposite Lebenthal Lisanti and The Dreyfus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, The Dreyfus 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 The Dreyfus will offset losses from the drop in The Dreyfus' long position.| Lebenthal Lisanti vs. Qs Large Cap | Lebenthal Lisanti vs. Qs Large Cap | Lebenthal Lisanti vs. Tax Managed Large Cap | Lebenthal Lisanti vs. Jhancock Disciplined Value |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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