Correlation Between Ashmore Emerging and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Lazard Us 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 Ashmore Emerging and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Emerging Markets and Lazard Strategic Equity, you can compare the effects of market volatilities on Ashmore Emerging and Lazard Us 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 Ashmore Emerging with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Lazard Us.
Diversification Opportunities for Ashmore Emerging and Lazard Us
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and LAZARD is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Ashmore 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 Ashmore Emerging Markets are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Lazard Us go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Lazard Us
Assuming the 90 days horizon Ashmore Emerging is expected to generate 2.83 times less return on investment than Lazard Us. But when comparing it to its historical volatility, Ashmore Emerging Markets is 5.92 times less risky than Lazard Us. It trades about 0.21 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,393 in Lazard Strategic Equity on August 31, 2024 and sell it today you would earn a total of 409.00 from holding Lazard Strategic Equity or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Lazard Strategic Equity
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Lazard Strategic Equity |
Ashmore Emerging and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Lazard Us
The main advantage of trading using opposite Ashmore Emerging and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.| Ashmore Emerging vs. Fidelity New Markets | Ashmore Emerging vs. Fidelity New Markets | Ashmore Emerging vs. Mfs Emerging Markets |
| Lazard Us vs. Lord Abbett Govt | Lazard Us vs. Ashmore Emerging Markets | Lazard Us vs. Aim Investment Secs | Lazard Us vs. Bbh Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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