Correlation Between Adams Diversified and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Adams Diversified and Lazard Enhanced 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 Enhanced 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 Enhanced Opportunities, you can compare the effects of market volatilities on Adams Diversified and Lazard Enhanced 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 Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Diversified and Lazard Enhanced.
Diversification Opportunities for Adams Diversified and Lazard Enhanced
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Adams and Lazard is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Adams Diversified Equity and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo 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 Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Adams Diversified i.e., Adams Diversified and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Adams Diversified and Lazard Enhanced
Considering the 90-day investment horizon Adams Diversified Equity is expected to generate 7.77 times more return on investment than Lazard Enhanced. However, Adams Diversified is 7.77 times more volatile than Lazard Enhanced Opportunities. It trades about 0.09 of its potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.53 per unit of risk. If you would invest 2,047 in Adams Diversified Equity on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Adams Diversified Equity or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adams Diversified Equity vs. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Adams Diversified Equity |
| Lazard Enhanced Oppo |
Adams Diversified and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adams Diversified and Lazard Enhanced
The main advantage of trading using opposite Adams Diversified and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Diversified position performs unexpectedly, Lazard Enhanced 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 Enhanced will offset losses from the drop in Lazard Enhanced'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 |
| Lazard Enhanced vs. Pace High Yield | Lazard Enhanced vs. Pax High Yield | Lazard Enhanced vs. Janus High Yield Fund | Lazard Enhanced vs. Guggenheim 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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