Correlation Between Touchstone Small and Lebenthal Lisanti
Can any of the company-specific risk be diversified away by investing in both Touchstone Small 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 Touchstone Small and Lebenthal Lisanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Small Cap and Lebenthal Lisanti Small, you can compare the effects of market volatilities on Touchstone Small 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 Touchstone Small with a short position of Lebenthal Lisanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Small and Lebenthal Lisanti.
Diversification Opportunities for Touchstone Small and Lebenthal Lisanti
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Lebenthal is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Small Cap 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 Touchstone Small 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 Touchstone Small Cap 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 Touchstone Small i.e., Touchstone Small and Lebenthal Lisanti go up and down completely randomly.
Pair Corralation between Touchstone Small and Lebenthal Lisanti
Assuming the 90 days horizon Touchstone Small is expected to generate 1.39 times less return on investment than Lebenthal Lisanti. But when comparing it to its historical volatility, Touchstone Small Cap is 1.21 times less risky than Lebenthal Lisanti. It trades about 0.16 of its potential returns per unit of risk. Lebenthal Lisanti Small is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,927 in Lebenthal Lisanti Small on June 11, 2025 and sell it today you would earn a total of 279.00 from holding Lebenthal Lisanti Small or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Small Cap vs. Lebenthal Lisanti Small
Performance |
| Timeline |
| Touchstone Small Cap |
| Lebenthal Lisanti Small |
Touchstone Small and Lebenthal Lisanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Small and Lebenthal Lisanti
The main advantage of trading using opposite Touchstone Small and Lebenthal Lisanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Small 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.| Touchstone Small vs. Angel Oak Multi Strategy | Touchstone Small vs. Franklin Emerging Market | Touchstone Small vs. Western Assets Emerging | Touchstone Small vs. The Hartford Emerging |
| Lebenthal Lisanti vs. Investec Emerging Markets | Lebenthal Lisanti vs. Harding Loevner Emerging | Lebenthal Lisanti vs. Doubleline Emerging Markets | Lebenthal Lisanti vs. Dodge Cox Emerging |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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