Correlation Between Barings Us and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Barings Us 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 Barings Us and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Lazard Global Dynamic, you can compare the effects of market volatilities on Barings Us 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 Barings Us with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Lazard Global.
Diversification Opportunities for Barings Us and Lazard Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Lazard Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Dynamic and Barings Us 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 Barings High Yield 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 Dynamic has no effect on the direction of Barings Us i.e., Barings Us and Lazard Global go up and down completely randomly.
Pair Corralation between Barings Us and Lazard Global
Assuming the 90 days horizon Barings High Yield is expected to generate 1.56 times more return on investment than Lazard Global. However, Barings Us is 1.56 times more volatile than Lazard Global Dynamic. It trades about 0.22 of its potential returns per unit of risk. Lazard Global Dynamic is currently generating about 0.01 per unit of risk. If you would invest 749.00 in Barings High Yield on October 14, 2024 and sell it today you would earn a total of 62.00 from holding Barings High Yield or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.24% |
| Values | Daily Returns |
Barings High Yield vs. Lazard Global Dynamic
Performance |
| Timeline |
| Barings High Yield |
| Lazard Global Dynamic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Us and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Lazard Global
The main advantage of trading using opposite Barings Us and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us 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.| Barings Us vs. Alphacentric Lifesci Healthcare | Barings Us vs. Deutsche Health And | Barings Us vs. Fidelity Advisor Health | Barings Us vs. Vanguard Health Care |
| Lazard Global vs. Catalystsmh High Income | Lazard Global vs. Pace High Yield | Lazard Global vs. Barings High Yield | Lazard Global vs. Ab High 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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