Correlation Between Columbia Mortgage and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Columbia Mortgage and Lazard Enhanced 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 Columbia Mortgage and Lazard Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Mortgage Opportunities and Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Columbia Mortgage and Lazard Enhanced 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 Columbia Mortgage with a short position of Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Mortgage and Lazard Enhanced.
Diversification Opportunities for Columbia Mortgage and Lazard Enhanced
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and LAZARD is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Mortgage Opportunitie and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo and Columbia Mortgage 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 Columbia Mortgage Opportunities are associated (or correlated) with Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Columbia Mortgage i.e., Columbia Mortgage and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Columbia Mortgage and Lazard Enhanced
Assuming the 90 days horizon Columbia Mortgage Opportunities is expected to generate 4.56 times more return on investment than Lazard Enhanced. However, Columbia Mortgage is 4.56 times more volatile than Lazard Enhanced Opportunities. It trades about 0.13 of its potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.47 per unit of risk. If you would invest 813.00 in Columbia Mortgage Opportunities on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Columbia Mortgage Opportunities or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Mortgage Opportunitie vs. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Columbia Mortgage |
| Lazard Enhanced Oppo |
Columbia Mortgage and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Mortgage and Lazard Enhanced
The main advantage of trading using opposite Columbia Mortgage and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Mortgage position performs unexpectedly, Lazard Enhanced 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 Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Columbia Mortgage vs. Blackrock Strategic Opps | Columbia Mortgage vs. Blackrock Strategic Income | Columbia Mortgage vs. Jpmorgan Strategic Income | Columbia Mortgage vs. Jpmorgan Strategic Income |
| Lazard Enhanced vs. Calamos Market Neutral | Lazard Enhanced vs. Calamos Market Neutral | Lazard Enhanced vs. Absolute Convertible Arbitrage | Lazard Enhanced vs. Aqr Diversified Arbitrage |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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