Correlation Between Lebenthal Lisanti and Rbc Emerging
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Rbc Emerging 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 Rbc Emerging 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 Rbc Emerging Markets, you can compare the effects of market volatilities on Lebenthal Lisanti and Rbc Emerging 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 Rbc Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Rbc Emerging.
Diversification Opportunities for Lebenthal Lisanti and Rbc Emerging
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Rbc is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Rbc Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Emerging Markets 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 Rbc Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Emerging Markets has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Rbc Emerging go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Rbc Emerging
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.63 times more return on investment than Rbc Emerging. However, Lebenthal Lisanti is 1.63 times more volatile than Rbc Emerging Markets. It trades about 0.16 of its potential returns per unit of risk. Rbc Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest 1,919 in Lebenthal Lisanti Small on June 5, 2025 and sell it today you would earn a total of 245.00 from holding Lebenthal Lisanti Small or generate 12.77% 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. Rbc Emerging Markets
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Rbc Emerging Markets |
Lebenthal Lisanti and Rbc Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Rbc Emerging
The main advantage of trading using opposite Lebenthal Lisanti and Rbc Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Rbc Emerging 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 Rbc Emerging will offset losses from the drop in Rbc Emerging's long position.| Lebenthal Lisanti vs. Ab Bond Inflation | Lebenthal Lisanti vs. Lord Abbett Inflation | Lebenthal Lisanti vs. Ab Bond Inflation | Lebenthal Lisanti vs. Short Duration Inflation |
| Rbc Emerging vs. Sit Government Securities | Rbc Emerging vs. Federated Government Income | Rbc Emerging vs. Intermediate Government Bond | Rbc Emerging vs. Us Government Securities |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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