Correlation Between Cref Inflation-linked and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Cref Inflation-linked 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 Cref Inflation-linked and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Cref Inflation-linked 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 Cref Inflation-linked with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation-linked and Lebenthal Lisanti.
Diversification Opportunities for Cref Inflation-linked and Lebenthal Lisanti
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cref and Lebenthal is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond 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 Cref Inflation-linked 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 Cref Inflation Linked Bond 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 Cref Inflation-linked i.e., Cref Inflation-linked and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Cref Inflation-linked and Lebenthal Lisanti
Assuming the 90 days trading horizon Cref Inflation-linked is expected to generate 4.16 times less return on investment than Lebenthal Lisanti. But when comparing it to its historical volatility, Cref Inflation Linked Bond is 7.24 times less risky than Lebenthal Lisanti. It trades about 0.28 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Cref Inflation Linked |
| Lebenthal Lisanti Small |
Cref Inflation-linked and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation-linked and Lebenthal Lisanti
The main advantage of trading using opposite Cref Inflation-linked and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation-linked 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.The idea behind Cref Inflation Linked Bond and Lebenthal Lisanti Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Lebenthal Lisanti vs. Ab Municipal Bond | Lebenthal Lisanti vs. Ab Bond Inflation | Lebenthal Lisanti vs. Ab Bond Inflation | Lebenthal Lisanti vs. Great West Inflation Protected 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |