Correlation Between Lebenthal Lisanti and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Franklin Adjustable 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 Franklin Adjustable 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 Franklin Adjustable Government, you can compare the effects of market volatilities on Lebenthal Lisanti and Franklin Adjustable 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 Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Franklin Adjustable.
Diversification Opportunities for Lebenthal Lisanti and Franklin Adjustable
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lebenthal and Franklin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable 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 Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Franklin Adjustable
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 12.28 times more return on investment than Franklin Adjustable. However, Lebenthal Lisanti is 12.28 times more volatile than Franklin Adjustable Government. It trades about 0.17 of its potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.21 per unit of risk. If you would invest 1,943 in Lebenthal Lisanti Small on June 8, 2025 and sell it today you would earn a total of 258.00 from holding Lebenthal Lisanti Small or generate 13.28% 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. Franklin Adjustable Government
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Franklin Adjustable |
Lebenthal Lisanti and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Franklin Adjustable
The main advantage of trading using opposite Lebenthal Lisanti and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Franklin Adjustable 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 Franklin Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Mfs Intrinsic Value | Lebenthal Lisanti vs. Russell 2000 2x | Lebenthal Lisanti vs. Ep Emerging Markets |
| Franklin Adjustable vs. Franklin Mutual Beacon | Franklin Adjustable vs. Templeton Developing Markets | Franklin Adjustable vs. Franklin Mutual Global | Franklin Adjustable vs. Franklin Mutual Global |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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