Correlation Between Lkcm Aquinas and Lkcm Balanced

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

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

Diversification Opportunities for Lkcm Aquinas and Lkcm Balanced

0.0

Correlation Coefficient

Lkcm Aquinas  Lkcm Balanced

Pay attention - limited upside

The 3 months correlation between Lkcm and Lkcm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Aquinas Growth and Lkcm Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Balanced and Lkcm Aquinas 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 Lkcm Aquinas Growth are associated (or correlated) with Lkcm Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Balanced has no effect on the direction of Lkcm Aquinas i.e., Lkcm Aquinas and Lkcm Balanced go up and down completely randomly.

Pair Corralation between Lkcm Aquinas and Lkcm Balanced

If you would invest  2,817  in Lkcm Balanced Fund on September 3, 2024 and sell it today you would earn a total of  152.00  from holding Lkcm Balanced Fund or generate 5.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lkcm Aquinas Growth  vs.  Lkcm Balanced Fund

Lkcm Aquinas Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lkcm Aquinas Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Lkcm Aquinas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lkcm Balanced

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lkcm Balanced Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lkcm Balanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lkcm Aquinas and Lkcm Balanced

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

The idea behind Lkcm Aquinas Growth and Lkcm Balanced Fund 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.