Correlation Between Baron Emerging and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and Lazard Global 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 Baron Emerging and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Emerging Markets and Lazard Global Listed, you can compare the effects of market volatilities on Baron Emerging and Lazard Global 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 Baron Emerging with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and Lazard Global.
Diversification Opportunities for Baron Emerging and Lazard Global
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baron and Lazard is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and Lazard Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Listed and Baron Emerging 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 Baron Emerging Markets are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Listed has no effect on the direction of Baron Emerging i.e., Baron Emerging and Lazard Global go up and down completely randomly.
Pair Corralation between Baron Emerging and Lazard Global
Assuming the 90 days horizon Baron Emerging Markets is expected to under-perform the Lazard Global. In addition to that, Baron Emerging is 1.56 times more volatile than Lazard Global Listed. It trades about -0.12 of its total potential returns per unit of risk. Lazard Global Listed is currently generating about 0.23 per unit of volatility. If you would invest 1,593 in Lazard Global Listed on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Lazard Global Listed or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Emerging Markets vs. Lazard Global Listed
Performance |
| Timeline |
| Baron Emerging Markets |
| Lazard Global Listed |
Baron Emerging and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and Lazard Global
The main advantage of trading using opposite Baron Emerging and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, Lazard Global 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 Global will offset losses from the drop in Lazard Global's long position.| Baron Emerging vs. Eaton Vance Income | Baron Emerging vs. Baird Aggregate Bond | Baron Emerging vs. Champlain Small | Baron Emerging vs. Mfs Emerging Markets |
| Lazard Global vs. Lazard Global Listed | Lazard Global vs. Wcm Focused International | Lazard Global vs. Tortoise Mlp Pipeline | Lazard Global vs. Blkrk Lc Cr |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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