Correlation Between Live Oak and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Live Oak and Lebenthal Lisanti 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 Live Oak and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Live Oak and Lebenthal Lisanti 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 Live Oak with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Lebenthal Lisanti.
Diversification Opportunities for Live Oak and Lebenthal Lisanti
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Live and Lebenthal is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Lebenthal Lisanti Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lebenthal Lisanti Small and Live Oak 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 Live Oak Health are associated (or correlated) with Lebenthal Lisanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lebenthal Lisanti Small has no effect on the direction of Live Oak i.e., Live Oak and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Live Oak and Lebenthal Lisanti
Assuming the 90 days horizon Live Oak is expected to generate 4.38 times less return on investment than Lebenthal Lisanti. But when comparing it to its historical volatility, Live Oak Health is 1.36 times less risky than Lebenthal Lisanti. It trades about 0.05 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.16 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Live Oak Health |
| Lebenthal Lisanti Small |
Live Oak and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Lebenthal Lisanti
The main advantage of trading using opposite Live Oak and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Lebenthal Lisanti 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 Lebenthal Lisanti will offset losses from the drop in Lebenthal Lisanti's long position.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Lebenthal Lisanti vs. Ab Bond Inflation | Lebenthal Lisanti vs. Lord Abbett Inflation | Lebenthal Lisanti vs. Ab Bond Inflation | Lebenthal Lisanti vs. Short Duration Inflation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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