Correlation Between Baird Midcap and Lazard International
Can any of the company-specific risk be diversified away by investing in both Baird Midcap 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 Baird Midcap and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Midcap Fund and Lazard International Equity, you can compare the effects of market volatilities on Baird Midcap 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 Baird Midcap with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Midcap and Lazard International.
Diversification Opportunities for Baird Midcap and Lazard International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baird and Lazard is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Baird Midcap Fund and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Baird Midcap 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 Baird Midcap Fund 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 Baird Midcap i.e., Baird Midcap and Lazard International go up and down completely randomly.
Pair Corralation between Baird Midcap and Lazard International
Assuming the 90 days horizon Baird Midcap Fund is expected to generate 1.25 times more return on investment than Lazard International. However, Baird Midcap is 1.25 times more volatile than Lazard International Equity. It trades about 0.37 of its potential returns per unit of risk. Lazard International Equity is currently generating about -0.02 per unit of risk. If you would invest 2,212 in Baird Midcap Fund on September 2, 2024 and sell it today you would earn a total of 173.00 from holding Baird Midcap Fund or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Midcap Fund vs. Lazard International Equity
Performance |
| Timeline |
| Baird Midcap |
| Lazard International |
Baird Midcap and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Midcap and Lazard International
The main advantage of trading using opposite Baird Midcap and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Midcap 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.| Baird Midcap vs. Pimco Funds | Baird Midcap vs. Aim Investment Secs | Baird Midcap vs. Bbh Trust | Baird Midcap vs. Dreyfus Institutional Reserves |
| Lazard International vs. Federated Mdt Large | Lazard International vs. Baird Midcap Fund | Lazard International vs. Lazard International Small | Lazard International vs. Jpmorgan Equity Income |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |