Correlation Between Ladenburg Growth and Bbh Intermediate

Can any of the company-specific risk be diversified away by investing in both Ladenburg Growth and Bbh Intermediate 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 Ladenburg Growth and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ladenburg Growth and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Ladenburg Growth and Bbh Intermediate 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 Ladenburg Growth with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladenburg Growth and Bbh Intermediate.

Diversification Opportunities for Ladenburg Growth and Bbh Intermediate

-0.05

Correlation Coefficient

Ladenburg Growth  Bbh Intermediate

Good diversification

The 3 months correlation between Ladenburg and Bbh is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ladenburg Growth and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Ladenburg Growth 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 Ladenburg Growth are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Ladenburg Growth i.e., Ladenburg Growth and Bbh Intermediate go up and down completely randomly.

Pair Corralation between Ladenburg Growth and Bbh Intermediate

Assuming the 90 days horizon Ladenburg Growth is expected to generate 2.97 times more return on investment than Bbh Intermediate. However, Ladenburg Growth is 2.97 times more volatile than Bbh Intermediate Municipal. It trades about 0.18 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.02 per unit of risk. If you would invest  1,772  in Ladenburg Growth on September 12, 2024 and sell it today you would earn a total of  120.00  from holding Ladenburg Growth or generate 6.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Ladenburg Growth  vs.  Bbh Intermediate Municipal

Ladenburg Growth

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ladenburg Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Ladenburg Growth may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bbh Intermediate Mun

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bbh Intermediate Municipal are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Bbh Intermediate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ladenburg Growth and Bbh Intermediate

The main advantage of trading using opposite Ladenburg Growth and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladenburg Growth position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.

The idea behind Ladenburg Growth and Bbh Intermediate Municipal 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.

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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..