Correlation Between Aqr Large and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Lazard Funds 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 Aqr Large and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and The Lazard Funds, you can compare the effects of market volatilities on Aqr Large and Lazard Funds 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 Aqr Large with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Lazard Funds.
Diversification Opportunities for Aqr Large and Lazard Funds
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Lazard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Aqr Large 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 Aqr Large Cap are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Aqr Large i.e., Aqr Large and Lazard Funds go up and down completely randomly.
Pair Corralation between Aqr Large and Lazard Funds
Assuming the 90 days horizon Aqr Large Cap is expected to generate 2.1 times more return on investment than Lazard Funds. However, Aqr Large is 2.1 times more volatile than The Lazard Funds. It trades about 0.07 of its potential returns per unit of risk. The Lazard Funds is currently generating about 0.07 per unit of risk. If you would invest 1,979 in Aqr Large Cap on September 12, 2024 and sell it today you would earn a total of 558.00 from holding Aqr Large Cap or generate 28.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. The Lazard Funds
Performance |
| Timeline |
| Aqr Large Cap |
| Lazard Funds |
Aqr Large and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Lazard Funds
The main advantage of trading using opposite Aqr Large and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Lazard Funds 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 Funds will offset losses from the drop in Lazard Funds' long position.| Aqr Large vs. The Gabelli Healthcare | Aqr Large vs. Eventide Healthcare Life | Aqr Large vs. Tekla Healthcare Opportunities | Aqr Large vs. Vanguard Health Care |
| Lazard Funds vs. Qs Large Cap | Lazard Funds vs. Touchstone Large Cap | Lazard Funds vs. M Large Cap | Lazard Funds vs. Aqr Large Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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