Correlation Between Ladenburg Growth and Ladenburg Growth

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

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

Diversification Opportunities for Ladenburg Growth and Ladenburg Growth

1.0

Correlation Coefficient

Ladenburg Growth  Ladenburg Growth

No risk reduction

The 3 months correlation between Ladenburg and Ladenburg is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ladenburg Growth and Ladenburg Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth Income 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 Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth Income has no effect on the direction of Ladenburg Growth i.e., Ladenburg Growth and Ladenburg Growth go up and down completely randomly.

Pair Corralation between Ladenburg Growth and Ladenburg Growth

Assuming the 90 days horizon Ladenburg Growth is expected to under-perform the Ladenburg Growth. In addition to that, Ladenburg Growth is 1.22 times more volatile than Ladenburg Growth Income. It trades about -0.14 of its total potential returns per unit of risk. Ladenburg Growth Income is currently generating about -0.14 per unit of volatility. If you would invest  1,571  in Ladenburg Growth Income on November 28, 2024 and sell it today you would lose (151.00) from holding Ladenburg Growth Income or give up 9.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ladenburg Growth  vs.  Ladenburg Growth Income

Ladenburg Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ladenburg Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Ladenburg Growth Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ladenburg Growth Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Ladenburg Growth and Ladenburg Growth

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

The idea behind Ladenburg Growth and Ladenburg Growth Income 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.