Correlation Between Artisan Thematic and Lazard Corporate
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Lazard Corporate 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 Artisan Thematic and Lazard Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Thematic Fund and Lazard Corporate Income, you can compare the effects of market volatilities on Artisan Thematic and Lazard Corporate 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 Artisan Thematic with a short position of Lazard Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Lazard Corporate.
Diversification Opportunities for Artisan Thematic and Lazard Corporate
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Artisan and Lazard is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Lazard Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Corporate Income and Artisan Thematic 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 Artisan Thematic Fund are associated (or correlated) with Lazard Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Corporate Income has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Lazard Corporate go up and down completely randomly.
Pair Corralation between Artisan Thematic and Lazard Corporate
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 6.3 times more return on investment than Lazard Corporate. However, Artisan Thematic is 6.3 times more volatile than Lazard Corporate Income. It trades about 0.04 of its potential returns per unit of risk. Lazard Corporate Income is currently generating about 0.16 per unit of risk. If you would invest 2,033 in Artisan Thematic Fund on October 22, 2024 and sell it today you would earn a total of 235.00 from holding Artisan Thematic Fund or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Lazard Corporate Income
Performance |
| Timeline |
| Artisan Thematic |
| Lazard Corporate Income |
Artisan Thematic and Lazard Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Lazard Corporate
The main advantage of trading using opposite Artisan Thematic and Lazard Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Lazard Corporate 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 Corporate will offset losses from the drop in Lazard Corporate's long position.| Artisan Thematic vs. John Hancock Financial | Artisan Thematic vs. Mesirow Financial Small | Artisan Thematic vs. 1919 Financial Services | Artisan Thematic vs. Angel Oak Financial |
| Lazard Corporate vs. Transamerica Short Term Bond | Lazard Corporate vs. Alpine Ultra Short | Lazard Corporate vs. Rbc Short Duration | Lazard Corporate vs. Cmg Ultra Short |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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