Correlation Between Lebenthal Lisanti and Tiaa-cref Lifecycle
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Tiaa-cref Lifecycle 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 Tiaa-cref Lifecycle 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 Tiaa Cref Lifecycle 2015, you can compare the effects of market volatilities on Lebenthal Lisanti and Tiaa-cref Lifecycle 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 Tiaa-cref Lifecycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Tiaa-cref Lifecycle.
Diversification Opportunities for Lebenthal Lisanti and Tiaa-cref Lifecycle
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lebenthal and Tiaa-cref is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Tiaa Cref Lifecycle 2015 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle 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 Tiaa-cref Lifecycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifecycle has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Tiaa-cref Lifecycle go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Tiaa-cref Lifecycle
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 4.57 times more return on investment than Tiaa-cref Lifecycle. However, Lebenthal Lisanti is 4.57 times more volatile than Tiaa Cref Lifecycle 2015. It trades about 0.18 of its potential returns per unit of risk. Tiaa Cref Lifecycle 2015 is currently generating about 0.25 per unit of risk. If you would invest 1,921 in Lebenthal Lisanti Small on June 10, 2025 and sell it today you would earn a total of 280.00 from holding Lebenthal Lisanti Small or generate 14.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Tiaa Cref Lifecycle 2015
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Tiaa Cref Lifecycle |
Lebenthal Lisanti and Tiaa-cref Lifecycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Tiaa-cref Lifecycle
The main advantage of trading using opposite Lebenthal Lisanti and Tiaa-cref Lifecycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Tiaa-cref Lifecycle 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 Tiaa-cref Lifecycle will offset losses from the drop in Tiaa-cref Lifecycle'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 |
| Tiaa-cref Lifecycle vs. Oppenheimer Gold Special | Tiaa-cref Lifecycle vs. First Eagle Gold | Tiaa-cref Lifecycle vs. Vy Goldman Sachs | Tiaa-cref Lifecycle vs. Gold And Precious |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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