Correlation Between WisdomTree Europe and Lazard Active
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe and Lazard Active 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 WisdomTree Europe and Lazard Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Europe SmallCap and Lazard Active ETF, you can compare the effects of market volatilities on WisdomTree Europe and Lazard Active 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 WisdomTree Europe with a short position of Lazard Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and Lazard Active.
Diversification Opportunities for WisdomTree Europe and Lazard Active
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and Lazard is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and Lazard Active ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Active ETF and WisdomTree Europe 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 WisdomTree Europe SmallCap are associated (or correlated) with Lazard Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Active ETF has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and Lazard Active go up and down completely randomly.
Pair Corralation between WisdomTree Europe and Lazard Active
Considering the 90-day investment horizon WisdomTree Europe SmallCap is expected to generate 0.99 times more return on investment than Lazard Active. However, WisdomTree Europe SmallCap is 1.01 times less risky than Lazard Active. It trades about 0.27 of its potential returns per unit of risk. Lazard Active ETF is currently generating about 0.26 per unit of risk. If you would invest 6,895 in WisdomTree Europe SmallCap on November 30, 2025 and sell it today you would earn a total of 873.00 from holding WisdomTree Europe SmallCap or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. Lazard Active ETF
Performance |
| Timeline |
| WisdomTree Europe |
| Lazard Active ETF |
WisdomTree Europe and Lazard Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and Lazard Active
The main advantage of trading using opposite WisdomTree Europe and Lazard Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe position performs unexpectedly, Lazard Active 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 Active will offset losses from the drop in Lazard Active's long position.| WisdomTree Europe vs. WisdomTree International MidCap | WisdomTree Europe vs. iShares MSCI Turkey | WisdomTree Europe vs. iShares Currency Hedged | WisdomTree Europe vs. iShares MSCI Japan |
| Lazard Active vs. Collaborative Investment Series | Lazard Active vs. Morningstar Unconstrained Allocation | Lazard Active vs. Thrivent High Yield | Lazard Active vs. Via Renewables |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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