Correlation Between Federated Mdt and Lazard International
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Lazard International 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 Mdt and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Large and Lazard International Equity, you can compare the effects of market volatilities on Federated Mdt and Lazard International 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 Mdt with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Lazard International.
Diversification Opportunities for Federated Mdt and Lazard International
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FEDERATED and Lazard is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Large and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Federated Mdt 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 Mdt Large are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Federated Mdt i.e., Federated Mdt and Lazard International go up and down completely randomly.
Pair Corralation between Federated Mdt and Lazard International
Assuming the 90 days horizon Federated Mdt Large is expected to generate 0.85 times more return on investment than Lazard International. However, Federated Mdt Large is 1.17 times less risky than Lazard International. It trades about 0.17 of its potential returns per unit of risk. Lazard International Equity is currently generating about 0.02 per unit of risk. If you would invest 3,176 in Federated Mdt Large on September 3, 2024 and sell it today you would earn a total of 576.00 from holding Federated Mdt Large or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Large vs. Lazard International Equity
Performance |
| Timeline |
| Federated Mdt Large |
| Lazard International |
Federated Mdt and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Lazard International
The main advantage of trading using opposite Federated Mdt and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.| Federated Mdt vs. Federated Max Cap Index | Federated Mdt vs. Federated Mdt Mid Cap | Federated Mdt vs. Federated Max Cap Index | Federated Mdt vs. Federated Global Allocation |
| Lazard International vs. Lazard International Equity | Lazard International vs. Federated Mdt Large | Lazard International vs. Baird Midcap Fund | Lazard International vs. Lazard International Small |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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