Correlation Between Amg River and Lazard International
Can any of the company-specific risk be diversified away by investing in both Amg River and Lazard International 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 Amg River and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Lazard International Strategic, you can compare the effects of market volatilities on Amg River and Lazard International 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 Amg River with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Lazard International.
Diversification Opportunities for Amg River and Lazard International
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Lazard is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Lazard International Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Amg River 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 Amg River Road are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Amg River i.e., Amg River and Lazard International go up and down completely randomly.
Pair Corralation between Amg River and Lazard International
Assuming the 90 days horizon Amg River Road is expected to generate 0.92 times more return on investment than Lazard International. However, Amg River Road is 1.09 times less risky than Lazard International. It trades about 0.06 of its potential returns per unit of risk. Lazard International Strategic is currently generating about 0.04 per unit of risk. If you would invest 906.00 in Amg River Road on August 30, 2024 and sell it today you would earn a total of 227.00 from holding Amg River Road or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Lazard International Strategic
Performance |
| Timeline |
| Amg River Road |
| Lazard International |
Amg River and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Lazard International
The main advantage of trading using opposite Amg River and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.| Amg River vs. Pear Tree Polaris | Amg River vs. Artisan Global Value | Amg River vs. Amg River Road | Amg River vs. Tcw Relative Value |
| Lazard International vs. International Fund International | Lazard International vs. Small Cap Equity | Lazard International vs. Laudus Large Cap | Lazard International vs. Large Cap Growth |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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