Correlation Between Federated Hermes and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Federated Hermes 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 Federated Hermes and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Conservative and Lazard Global Dynamic, you can compare the effects of market volatilities on Federated Hermes 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 Federated Hermes with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Lazard Global.
Diversification Opportunities for Federated Hermes and Lazard Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Lazard Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Dynamic and Federated Hermes 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 Federated Hermes Conservative 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 Dynamic has no effect on the direction of Federated Hermes i.e., Federated Hermes and Lazard Global go up and down completely randomly.
Pair Corralation between Federated Hermes and Lazard Global
Assuming the 90 days horizon Federated Hermes Conservative is expected to generate 0.24 times more return on investment than Lazard Global. However, Federated Hermes Conservative is 4.13 times less risky than Lazard Global. It trades about 0.22 of its potential returns per unit of risk. Lazard Global Dynamic is currently generating about 0.05 per unit of risk. If you would invest 899.00 in Federated Hermes Conservative on September 12, 2024 and sell it today you would earn a total of 102.00 from holding Federated Hermes Conservative or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Conservative vs. Lazard Global Dynamic
Performance |
| Timeline |
| Federated Hermes Con |
| Lazard Global Dynamic |
Federated Hermes and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Lazard Global
The main advantage of trading using opposite Federated Hermes and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes 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.| Federated Hermes vs. Heartland Value Plus | Federated Hermes vs. Amg River Road | Federated Hermes vs. Applied Finance Explorer | Federated Hermes vs. Fidelity Small Cap |
| Lazard Global vs. Federated Hermes Conservative | Lazard Global vs. Stone Ridge Diversified | Lazard Global vs. Calvert Conservative Allocation | Lazard Global vs. Jpmorgan Diversified Fund |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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