Correlation Between Delaware Healthcare and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Delaware Healthcare and Lazard Funds 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 Healthcare and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Healthcare Fund and The Lazard Funds, you can compare the effects of market volatilities on Delaware Healthcare and Lazard Funds 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 Healthcare with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Healthcare and Lazard Funds.
Diversification Opportunities for Delaware Healthcare and Lazard Funds
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delaware and Lazard is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Healthcare Fund and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Delaware Healthcare 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 Healthcare Fund are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Delaware Healthcare i.e., Delaware Healthcare and Lazard Funds go up and down completely randomly.
Pair Corralation between Delaware Healthcare and Lazard Funds
Assuming the 90 days horizon Delaware Healthcare is expected to generate 34.04 times less return on investment than Lazard Funds. But when comparing it to its historical volatility, Delaware Healthcare Fund is 1.13 times less risky than Lazard Funds. It trades about 0.0 of its potential returns per unit of risk. The Lazard Funds is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 844.00 in The Lazard Funds on September 12, 2024 and sell it today you would earn a total of 360.00 from holding The Lazard Funds or generate 42.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Healthcare Fund vs. The Lazard Funds
Performance |
| Timeline |
| Delaware Healthcare |
| Lazard Funds |
Delaware Healthcare and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Healthcare and Lazard Funds
The main advantage of trading using opposite Delaware Healthcare and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Healthcare position performs unexpectedly, Lazard Funds 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 Funds will offset losses from the drop in Lazard Funds' long position.| Delaware Healthcare vs. Alpine Ultra Short | Delaware Healthcare vs. Astor Longshort Fund | Delaware Healthcare vs. Cmg Ultra Short | Delaware Healthcare vs. Angel Oak Ultrashort |
| Lazard Funds vs. Live Oak Health | Lazard Funds vs. Baron Health Care | Lazard Funds vs. Delaware Healthcare Fund | Lazard Funds vs. Fidelity Advisor Health |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |