Correlation Between Ab Global and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Bond and Lazard Emerging Markets, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Lazard Emerging.
Diversification Opportunities for Ab Global and Lazard Emerging
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANAGX and Lazard is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond 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 Ab Global 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 Ab Global Bond 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 Ab Global i.e., Ab Global and Lazard Emerging go up and down completely randomly.
Pair Corralation between Ab Global and Lazard Emerging
Assuming the 90 days horizon Ab Global Bond is expected to generate 0.28 times more return on investment than Lazard Emerging. However, Ab Global Bond is 3.53 times less risky than Lazard Emerging. It trades about -0.48 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about -0.33 per unit of risk. If you would invest 697.00 in Ab Global Bond on October 9, 2024 and sell it today you would lose (12.00) from holding Ab Global Bond or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Bond vs. Lazard Emerging Markets
Performance |
| Timeline |
| Ab Global Bond |
| Lazard Emerging Markets |
Ab Global and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Lazard Emerging
The main advantage of trading using opposite Ab Global and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Siit High Yield | Ab Global vs. Ab High Income | Ab Global vs. Needham Aggressive Growth | Ab Global vs. Dunham High Yield |
| Lazard Emerging vs. Lazard International Quality | Lazard Emerging vs. Lazard Small Mid Cap | Lazard Emerging vs. Lazard Equity Franchise | Lazard Emerging vs. Lazard Emerging Markets |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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