Correlation Between High-yield Fund and Lazard Us
Can any of the company-specific risk be diversified away by investing in both High-yield Fund and Lazard Us 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 High-yield Fund and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Fund Investor and Lazard Corporate Income, you can compare the effects of market volatilities on High-yield Fund and Lazard Us 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 High-yield Fund with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Fund and Lazard Us.
Diversification Opportunities for High-yield Fund and Lazard Us
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between High-yield and Lazard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Fund Investor and Lazard Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Corporate Income and High-yield Fund 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 High Yield Fund Investor are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Corporate Income has no effect on the direction of High-yield Fund i.e., High-yield Fund and Lazard Us go up and down completely randomly.
Pair Corralation between High-yield Fund and Lazard Us
Assuming the 90 days horizon High Yield Fund Investor is expected to generate 1.05 times more return on investment than Lazard Us. However, High-yield Fund is 1.05 times more volatile than Lazard Corporate Income. It trades about 0.13 of its potential returns per unit of risk. Lazard Corporate Income is currently generating about 0.13 per unit of risk. If you would invest 443.00 in High Yield Fund Investor on November 6, 2024 and sell it today you would earn a total of 68.00 from holding High Yield Fund Investor or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Fund Investor vs. Lazard Corporate Income
Performance |
| Timeline |
| High Yield Fund |
| Lazard Corporate Income |
High-yield Fund and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Fund and Lazard Us
The main advantage of trading using opposite High-yield Fund and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Fund position performs unexpectedly, Lazard Us 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 Lazard Us will offset losses from the drop in Lazard Us' long position.| High-yield Fund vs. High Yield Municipal Fund | High-yield Fund vs. Diversified Bond Fund | High-yield Fund vs. Ginnie Mae Fund | High-yield Fund vs. Utilities Fund Investor |
| Lazard Us vs. Tcw High Yield | Lazard Us vs. Pax High Yield | Lazard Us vs. High Yield Fund Investor | Lazard Us vs. Buffalo High Yield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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