Correlation Between Lazard Emerging and American Beacon
Can any of the company-specific risk be diversified away by investing in both Lazard Emerging and American Beacon 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 Emerging and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Emerging Markets and American Beacon International, you can compare the effects of market volatilities on Lazard Emerging and American Beacon 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 Emerging with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Emerging and American Beacon.
Diversification Opportunities for Lazard Emerging and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lazard and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Emerging Markets and American Beacon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Inte and Lazard Emerging 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 Lazard Emerging Markets are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Inte has no effect on the direction of Lazard Emerging i.e., Lazard Emerging and American Beacon go up and down completely randomly.
Pair Corralation between Lazard Emerging and American Beacon
If you would invest 1,696 in American Beacon International on December 1, 2024 and sell it today you would earn a total of 50.00 from holding American Beacon International or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lazard Emerging Markets vs. American Beacon International
Performance |
| Timeline |
| Lazard Emerging Markets |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| American Beacon Inte |
Lazard Emerging and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Emerging and American Beacon
The main advantage of trading using opposite Lazard Emerging and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Emerging position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Lazard Emerging vs. Davis Series | Lazard Emerging vs. T Rowe Price | Lazard Emerging vs. Voya Government Money | Lazard Emerging vs. John Hancock Money |
| American Beacon vs. Vanguard Financials Index | American Beacon vs. Financials Ultrasector Profund | American Beacon vs. Gabelli Global Financial | American Beacon vs. Goldman Sachs Financial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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