Correlation Between Angel Oak and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Lazard Real 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 Angel Oak and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Multi Strategy and Lazard Real Assets, you can compare the effects of market volatilities on Angel Oak and Lazard Real 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 Angel Oak with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Lazard Real.
Diversification Opportunities for Angel Oak and Lazard Real
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Angel and Lazard is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Lazard Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Real Assets and Angel Oak 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 Angel Oak Multi Strategy are associated (or correlated) with Lazard Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Real Assets has no effect on the direction of Angel Oak i.e., Angel Oak and Lazard Real go up and down completely randomly.
Pair Corralation between Angel Oak and Lazard Real
Assuming the 90 days horizon Angel Oak is expected to generate 2018.0 times less return on investment than Lazard Real. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 3.12 times less risky than Lazard Real. It trades about 0.0 of its potential returns per unit of risk. Lazard Real Assets is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 977.00 in Lazard Real Assets on October 20, 2024 and sell it today you would earn a total of 40.00 from holding Lazard Real Assets or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Lazard Real Assets
Performance |
| Timeline |
| Angel Oak Multi |
| Lazard Real Assets |
Angel Oak and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Lazard Real
The main advantage of trading using opposite Angel Oak and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Lazard Real 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 Real will offset losses from the drop in Lazard Real's long position.| Angel Oak vs. Mutual Of America | Angel Oak vs. Fidelity Small Cap | Angel Oak vs. Amg River Road | Angel Oak vs. Mid Cap 15x Strategy |
| Lazard Real vs. Lazard International Quality | Lazard Real vs. Lazard Small Mid Cap | Lazard Real vs. Lazard Equity Franchise | Lazard Real 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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