Correlation Between Eic Value and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Eic Value and Lazard Global 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 Eic Value and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Lazard Global Equity, you can compare the effects of market volatilities on Eic Value and Lazard Global 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 Eic Value with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Lazard Global.
Diversification Opportunities for Eic Value and Lazard Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eic and Lazard is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Lazard Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Equity and Eic 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 Eic Value Fund are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Equity has no effect on the direction of Eic Value i.e., Eic Value and Lazard Global go up and down completely randomly.
Pair Corralation between Eic Value and Lazard Global
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.9 times more return on investment than Lazard Global. However, Eic Value Fund is 1.11 times less risky than Lazard Global. It trades about 0.09 of its potential returns per unit of risk. Lazard Global Equity is currently generating about 0.07 per unit of risk. If you would invest 1,506 in Eic Value Fund on September 14, 2024 and sell it today you would earn a total of 214.00 from holding Eic Value Fund or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Eic Value Fund vs. Lazard Global Equity
Performance |
| Timeline |
| Eic Value Fund |
| Lazard Global Equity |
Eic Value and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Lazard Global
The main advantage of trading using opposite Eic Value and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Lazard Global 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 Global will offset losses from the drop in Lazard Global's long position.| Eic Value vs. Eic Value Fund | Eic Value vs. T Rowe Price | Eic Value vs. Davidson Multi Cap Equity | Eic Value vs. Equity Income Fund |
| Lazard Global vs. Western Asset Total | Lazard Global vs. Prudential Jennison Equity | Lazard Global vs. Oppenheimer Developing Markets | Lazard Global vs. Aquagold International |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |