Correlation Between Lebenthal Lisanti and Federated Mdt
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Federated Mdt 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 Federated Mdt 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 Federated Mdt Small, you can compare the effects of market volatilities on Lebenthal Lisanti and Federated Mdt 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 Federated Mdt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Federated Mdt.
Diversification Opportunities for Lebenthal Lisanti and Federated Mdt
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Federated is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Federated Mdt Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Small 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 Federated Mdt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mdt Small has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Federated Mdt go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Federated Mdt
Assuming the 90 days horizon Lebenthal Lisanti is expected to generate 5.35 times less return on investment than Federated Mdt. In addition to that, Lebenthal Lisanti is 1.32 times more volatile than Federated Mdt Small. It trades about 0.01 of its total potential returns per unit of risk. Federated Mdt Small is currently generating about 0.1 per unit of volatility. If you would invest 3,270 in Federated Mdt Small on September 11, 2025 and sell it today you would earn a total of 103.00 from holding Federated Mdt Small or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Federated Mdt Small
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Federated Mdt Small |
Lebenthal Lisanti and Federated Mdt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Federated Mdt
The main advantage of trading using opposite Lebenthal Lisanti and Federated Mdt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Federated Mdt 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 Federated Mdt will offset losses from the drop in Federated Mdt's long position.| Lebenthal Lisanti vs. Fidelity Sustainable International | Lebenthal Lisanti vs. Astor Star Fund | Lebenthal Lisanti vs. Northern Lights | Lebenthal Lisanti vs. Guinness Atkinson Asia |
| Federated Mdt vs. Sa Value | Federated Mdt vs. Goldman Sachs Large | Federated Mdt vs. T Rowe Price | Federated Mdt vs. T Rowe Price |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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