Correlation Between Lebenthal Lisanti and Nationwide Small
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Nationwide Small 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 Nationwide Small 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 Nationwide Small Cap, you can compare the effects of market volatilities on Lebenthal Lisanti and Nationwide Small 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 Nationwide Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Nationwide Small.
Diversification Opportunities for Lebenthal Lisanti and Nationwide Small
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Nationwide is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Nationwide Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Small Cap 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 Nationwide Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Small Cap has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Nationwide Small go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Nationwide Small
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.07 times more return on investment than Nationwide Small. However, Lebenthal Lisanti is 1.07 times more volatile than Nationwide Small Cap. It trades about 0.18 of its potential returns per unit of risk. Nationwide Small Cap is currently generating about 0.17 per unit of risk. If you would invest 1,887 in Lebenthal Lisanti Small on May 26, 2025 and sell it today you would earn a total of 279.00 from holding Lebenthal Lisanti Small or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Nationwide Small Cap
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Nationwide Small Cap |
Lebenthal Lisanti and Nationwide Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Nationwide Small
The main advantage of trading using opposite Lebenthal Lisanti and Nationwide Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Nationwide Small 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 Nationwide Small will offset losses from the drop in Nationwide Small's long position.| Lebenthal Lisanti vs. Tfa Alphagen Growth | Lebenthal Lisanti vs. Eagle Growth Income | Lebenthal Lisanti vs. T Rowe Price | Lebenthal Lisanti vs. T Rowe Price |
| Nationwide Small vs. Goldman Sachs Small | Nationwide Small vs. American Century Etf | Nationwide Small vs. Lord Abbett Small | Nationwide Small vs. Applied Finance Explorer |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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