Correlation Between Ab Select and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Select 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 Select Equity and Lazard Emerging Markets, you can compare the effects of market volatilities on Ab Select 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 Select with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Lazard Emerging.
Diversification Opportunities for Ab Select and Lazard Emerging
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between AUUIX and Lazard is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity 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 Select 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 Select Equity 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 Select i.e., Ab Select and Lazard Emerging go up and down completely randomly.
Pair Corralation between Ab Select and Lazard Emerging
Assuming the 90 days horizon Ab Select Equity is expected to generate 0.55 times more return on investment than Lazard Emerging. However, Ab Select Equity is 1.81 times less risky than Lazard Emerging. It trades about 0.02 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about -0.01 per unit of risk. If you would invest 2,392 in Ab Select Equity on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Ab Select Equity or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Lazard Emerging Markets
Performance |
| Timeline |
| Ab Select Equity |
| Lazard Emerging Markets |
Ab Select and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Lazard Emerging
The main advantage of trading using opposite Ab Select and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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 Select vs. Vanguard Total Stock | Ab Select vs. Vanguard 500 Index | Ab Select vs. Vanguard Total Stock | Ab Select vs. Vanguard Total Stock |
| Lazard Emerging vs. Rational Strategic Allocation | Lazard Emerging vs. Touchstone Large Cap | Lazard Emerging vs. T Rowe Price | Lazard Emerging vs. Alternative Asset Allocation |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |