Correlation Between Bruce Fund and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Bruce Fund 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 Bruce Fund and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Lazard Global Total, you can compare the effects of market volatilities on Bruce Fund 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 Bruce Fund with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Lazard Global.
Diversification Opportunities for Bruce Fund and Lazard Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bruce and Lazard is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Lazard Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Total and Bruce Fund 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 Bruce Fund Bruce 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 Total has no effect on the direction of Bruce Fund i.e., Bruce Fund and Lazard Global go up and down completely randomly.
Pair Corralation between Bruce Fund and Lazard Global
Assuming the 90 days horizon Bruce Fund is expected to generate 3.62 times less return on investment than Lazard Global. But when comparing it to its historical volatility, Bruce Fund Bruce is 1.44 times less risky than Lazard Global. It trades about 0.02 of its potential returns per unit of risk. Lazard Global Total is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,280 in Lazard Global Total on August 30, 2024 and sell it today you would earn a total of 383.00 from holding Lazard Global Total or generate 29.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Lazard Global Total
Performance |
| Timeline |
| Bruce Fund Bruce |
| Lazard Global Total |
Bruce Fund and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Lazard Global
The main advantage of trading using opposite Bruce Fund and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund 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.| Bruce Fund vs. Gmo High Yield | Bruce Fund vs. Pia High Yield | Bruce Fund vs. Alpine High Yield | Bruce Fund vs. Virtus High Yield |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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