Correlation Between Delaware Value and Lazard International
Can any of the company-specific risk be diversified away by investing in both Delaware Value 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 Delaware Value and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Value Fund and Lazard International Equity, you can compare the effects of market volatilities on Delaware Value 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 Delaware Value with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Value and Lazard International.
Diversification Opportunities for Delaware Value and Lazard International
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delaware and Lazard is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Value 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 Delaware Value 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 Delaware Value 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 Delaware Value i.e., Delaware Value and Lazard International go up and down completely randomly.
Pair Corralation between Delaware Value and Lazard International
Assuming the 90 days horizon Delaware Value Fund is expected to under-perform the Lazard International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Delaware Value Fund is 1.22 times less risky than Lazard International. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Lazard International Equity is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Lazard International Equity on September 12, 2024 and sell it today you would lose (5.00) from holding Lazard International Equity or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Value Fund vs. Lazard International Equity
Performance |
| Timeline |
| Delaware Value |
| Lazard International |
Delaware Value and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Value and Lazard International
The main advantage of trading using opposite Delaware Value and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Value 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.| Delaware Value vs. Commonwealth Global Fund | Delaware Value vs. L Abbett Fundamental | Delaware Value vs. T Rowe Price | Delaware Value vs. Qs Growth Fund |
| Lazard International vs. Applied Finance Explorer | Lazard International vs. Lord Abbett Small | Lazard International vs. Valic Company I | Lazard International vs. Vanguard Small Cap Value |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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