Correlation Between Lebenthal Lisanti and Praxis Small
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Praxis Small 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 Praxis Small 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 Praxis Small Cap, you can compare the effects of market volatilities on Lebenthal Lisanti and Praxis Small 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 Praxis Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Praxis Small.
Diversification Opportunities for Lebenthal Lisanti and Praxis Small
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lebenthal and Praxis is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Praxis Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Small Cap 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 Praxis Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Small Cap has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Praxis Small go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Praxis Small
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.08 times more return on investment than Praxis Small. However, Lebenthal Lisanti is 1.08 times more volatile than Praxis Small Cap. It trades about 0.07 of its potential returns per unit of risk. Praxis Small Cap is currently generating about 0.02 per unit of risk. If you would invest 2,031 in Lebenthal Lisanti Small on September 25, 2024 and sell it today you would earn a total of 121.00 from holding Lebenthal Lisanti Small or generate 5.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lebenthal Lisanti Small vs. Praxis Small Cap
Performance |
Timeline |
Lebenthal Lisanti Small |
Praxis Small Cap |
Lebenthal Lisanti and Praxis Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lebenthal Lisanti and Praxis Small
The main advantage of trading using opposite Lebenthal Lisanti and Praxis Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Praxis Small 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 Praxis Small will offset losses from the drop in Praxis Small's long position.Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
Praxis Small vs. Angel Oak Multi Strategy | Praxis Small vs. Vy Jpmorgan Emerging | Praxis Small vs. Origin Emerging Markets | Praxis Small vs. Mid Cap 15x Strategy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |