Correlation Between Federated Mdt and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Federated Mdt 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 Federated Mdt and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Small and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Federated Mdt 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 Federated Mdt with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Lebenthal Lisanti.
Diversification Opportunities for Federated Mdt and Lebenthal Lisanti
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Lebenthal is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Small 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 Federated Mdt 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 Federated Mdt Small 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 Federated Mdt i.e., Federated Mdt and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Federated Mdt and Lebenthal Lisanti
Assuming the 90 days horizon Federated Mdt Small is expected to generate 0.92 times more return on investment than Lebenthal Lisanti. However, Federated Mdt Small is 1.09 times less risky than Lebenthal Lisanti. It trades about 0.22 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.13 per unit of risk. If you would invest 2,748 in Federated Mdt Small on May 27, 2025 and sell it today you would earn a total of 186.00 from holding Federated Mdt Small or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Small vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Federated Mdt Small |
| Lebenthal Lisanti Small |
Federated Mdt and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Lebenthal Lisanti
The main advantage of trading using opposite Federated Mdt and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt 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.| Federated Mdt vs. Federated Mdt Small | Federated Mdt vs. Federated Mdt Small | Federated Mdt vs. Federated Mdt Large | Federated Mdt vs. Blackrock Mid Cap |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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