Correlation Between Lazard Funds and Lazard International
Can any of the company-specific risk be diversified away by investing in both Lazard Funds 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 Lazard Funds and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Lazard Funds and Lazard International Equity, you can compare the effects of market volatilities on Lazard Funds 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 Lazard Funds with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Funds and Lazard International.
Diversification Opportunities for Lazard Funds and Lazard International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lazard and Lazard is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Lazard Funds and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Lazard Funds 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 The Lazard Funds 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 Lazard Funds i.e., Lazard Funds and Lazard International go up and down completely randomly.
Pair Corralation between Lazard Funds and Lazard International
Assuming the 90 days horizon The Lazard Funds is expected to generate 0.74 times more return on investment than Lazard International. However, The Lazard Funds is 1.34 times less risky than Lazard International. It trades about 0.06 of its potential returns per unit of risk. Lazard International Equity is currently generating about 0.05 per unit of risk. If you would invest 1,012 in The Lazard Funds on August 31, 2024 and sell it today you would earn a total of 137.00 from holding The Lazard Funds or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Lazard Funds vs. Lazard International Equity
Performance |
| Timeline |
| Lazard Funds |
| Lazard International |
Lazard Funds and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Funds and Lazard International
The main advantage of trading using opposite Lazard Funds and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Funds 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.| Lazard Funds vs. Aqr Long Short Equity | Lazard Funds vs. Origin Emerging Markets | Lazard Funds vs. Rbc Emerging Markets | Lazard Funds vs. Goldman Sachs Emerging |
| Lazard International vs. Vanguard Total International | Lazard International vs. Vanguard Developed Markets | Lazard International vs. Vanguard Developed Markets | Lazard International vs. HUMANA INC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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