Correlation Between Adams Diversified and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Adams Diversified and Lazard Emerging 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 Adams Diversified and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adams Diversified Equity and Lazard Emerging Markets, you can compare the effects of market volatilities on Adams Diversified and Lazard Emerging 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 Adams Diversified with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Diversified and Lazard Emerging.
Diversification Opportunities for Adams Diversified and Lazard Emerging
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Adams and Lazard is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Adams Diversified Equity and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets and Adams Diversified 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 Adams Diversified Equity are associated (or correlated) with Lazard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of Adams Diversified i.e., Adams Diversified and Lazard Emerging go up and down completely randomly.
Pair Corralation between Adams Diversified and Lazard Emerging
If you would invest 1,420 in Adams Diversified Equity on September 12, 2024 and sell it today you would earn a total of 636.00 from holding Adams Diversified Equity or generate 44.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Adams Diversified Equity vs. Lazard Emerging Markets
Performance |
| Timeline |
| Adams Diversified Equity |
| Lazard Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Adams Diversified and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adams Diversified and Lazard Emerging
The main advantage of trading using opposite Adams Diversified and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Diversified position performs unexpectedly, Lazard Emerging 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 Emerging will offset losses from the drop in Lazard Emerging's long position.| Adams Diversified vs. Tri Continental Closed | Adams Diversified vs. SRH Total Return | Adams Diversified vs. Putnam Municipal Opportunities | Adams Diversified vs. Tortoise Energy Independence |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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