Correlation Between Abrdn Emerging and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Abrdn Emerging and Lazard Global 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 Abrdn Emerging and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn Emerging Markets and Lazard Global Total, you can compare the effects of market volatilities on Abrdn Emerging and Lazard Global 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 Abrdn Emerging with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Emerging and Lazard Global.
Diversification Opportunities for Abrdn Emerging and Lazard Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abrdn and Lazard is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Emerging Markets and Lazard Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Total and Abrdn Emerging 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 Abrdn Emerging Markets are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Total has no effect on the direction of Abrdn Emerging i.e., Abrdn Emerging and Lazard Global go up and down completely randomly.
Pair Corralation between Abrdn Emerging and Lazard Global
Considering the 90-day investment horizon Abrdn Emerging Markets is expected to under-perform the Lazard Global. In addition to that, Abrdn Emerging is 1.22 times more volatile than Lazard Global Total. It trades about -0.2 of its total potential returns per unit of risk. Lazard Global Total is currently generating about -0.03 per unit of volatility. If you would invest 1,696 in Lazard Global Total on August 27, 2024 and sell it today you would lose (11.00) from holding Lazard Global Total or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn Emerging Markets vs. Lazard Global Total
Performance |
| Timeline |
| Abrdn Emerging Markets |
| Lazard Global Total |
Abrdn Emerging and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Emerging and Lazard Global
The main advantage of trading using opposite Abrdn Emerging and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Emerging position performs unexpectedly, Lazard Global 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 Global will offset losses from the drop in Lazard Global's long position.| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muni Intermediate | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital Corp |
| Lazard Global vs. Cohen Steers Closed | Lazard Global vs. Abrdn Emerging Markets | Lazard Global vs. Allianzgi Equity Convertible | Lazard Global vs. Eaton Vance Senior |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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