Correlation Between Fidelity Series and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Fidelity Series 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 Fidelity Series and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Government and Lazard Strategic Equity, you can compare the effects of market volatilities on Fidelity Series 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 Fidelity Series with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Lazard Us.
Diversification Opportunities for Fidelity Series and Lazard Us
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and LAZARD is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government 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 Fidelity Series 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 Fidelity Series Government 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 Fidelity Series i.e., Fidelity Series and Lazard Us go up and down completely randomly.
Pair Corralation between Fidelity Series and Lazard Us
Assuming the 90 days horizon Fidelity Series is expected to generate 35.92 times less return on investment than Lazard Us. But when comparing it to its historical volatility, Fidelity Series Government is 2.24 times less risky than Lazard Us. It trades about 0.02 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,727 in Lazard Strategic Equity on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Lazard Strategic Equity or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Series Government vs. Lazard Strategic Equity
Performance |
| Timeline |
| Fidelity Series Gove |
| Lazard Strategic Equity |
Fidelity Series and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Lazard Us
The main advantage of trading using opposite Fidelity Series and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series 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.| Fidelity Series vs. Fidelity Freedom 2015 | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Pennsylvania Municipal |
| Lazard Us vs. Lord Abbett Government | Lazard Us vs. Virtus Seix Government | Lazard Us vs. Fidelity Series Government | Lazard Us vs. Aig Government Money |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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