Correlation Between Lebenthal Lisanti and Calvert International

Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Calvert International 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 Calvert International 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 Calvert International Equity, you can compare the effects of market volatilities on Lebenthal Lisanti and Calvert International 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 Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Calvert International.

Diversification Opportunities for Lebenthal Lisanti and Calvert International

0.89

Correlation Coefficient

Lebenthal Lisanti  Calvert International

Very poor diversification

The 3 months correlation between Lebenthal and Calvert is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Calvert International go up and down completely randomly.

Pair Corralation between Lebenthal Lisanti and Calvert International

Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 1.3 times more return on investment than Calvert International. However, Lebenthal Lisanti is 1.3 times more volatile than Calvert International Equity. It trades about 0.23 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.07 per unit of risk. If you would invest  1,780  in Lebenthal Lisanti Small on May 2, 2025 and sell it today you would earn a total of  291.00  from holding Lebenthal Lisanti Small or generate 16.35% 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.  Calvert International Equity

Lebenthal Lisanti Small

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lebenthal Lisanti Small are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Lebenthal Lisanti showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Equity are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lebenthal Lisanti and Calvert International

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

The idea behind Lebenthal Lisanti Small and Calvert International Equity 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.