Correlation Between Lebenthal Lisanti and Wmcanx
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Wmcanx 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 Wmcanx 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 Wmcanx, you can compare the effects of market volatilities on Lebenthal Lisanti and Wmcanx 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 Wmcanx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Wmcanx.
Diversification Opportunities for Lebenthal Lisanti and Wmcanx
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Wmcanx is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Wmcanx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wmcanx 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 Wmcanx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wmcanx has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Wmcanx go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Wmcanx
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 2.4 times more return on investment than Wmcanx. However, Lebenthal Lisanti is 2.4 times more volatile than Wmcanx. It trades about 0.18 of its potential returns per unit of risk. Wmcanx is currently generating about 0.23 per unit of risk. If you would invest 1,887 in Lebenthal Lisanti Small on May 27, 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. Wmcanx
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Wmcanx |
Lebenthal Lisanti and Wmcanx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Wmcanx
The main advantage of trading using opposite Lebenthal Lisanti and Wmcanx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Wmcanx 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 Wmcanx will offset losses from the drop in Wmcanx's long position.| Lebenthal Lisanti vs. Forum Real Estate | Lebenthal Lisanti vs. Tiaa Cref Real Estate | Lebenthal Lisanti vs. Dunham Real Estate | Lebenthal Lisanti vs. Global Real Estate |
| Wmcanx vs. Jpmorgan High Yield | Wmcanx vs. Strategic Advisers Income | Wmcanx vs. Pioneer High Yield | Wmcanx vs. Prudential High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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