Correlation Between Lazard Global and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Franklin Lifesmart 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 Global and Franklin Lifesmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Global Equity and Franklin Lifesmart Retirement, you can compare the effects of market volatilities on Lazard Global and Franklin Lifesmart 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 Global with a short position of Franklin Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Franklin Lifesmart.
Diversification Opportunities for Lazard Global and Franklin Lifesmart
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Franklin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Equity and Franklin Lifesmart Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart and Lazard Global 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 Global Equity are associated (or correlated) with Franklin Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart has no effect on the direction of Lazard Global i.e., Lazard Global and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Lazard Global and Franklin Lifesmart
Assuming the 90 days horizon Lazard Global Equity is expected to under-perform the Franklin Lifesmart. In addition to that, Lazard Global is 2.54 times more volatile than Franklin Lifesmart Retirement. It trades about -0.06 of its total potential returns per unit of risk. Franklin Lifesmart Retirement is currently generating about 0.07 per unit of volatility. If you would invest 1,052 in Franklin Lifesmart Retirement on October 26, 2024 and sell it today you would earn a total of 16.00 from holding Franklin Lifesmart Retirement or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Equity vs. Franklin Lifesmart Retirement
Performance |
| Timeline |
| Lazard Global Equity |
| Franklin Lifesmart |
Lazard Global and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Franklin Lifesmart
The main advantage of trading using opposite Lazard Global and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Franklin Lifesmart 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 Franklin Lifesmart will offset losses from the drop in Franklin Lifesmart's long position.| Lazard Global vs. Putnam Global Financials | Lazard Global vs. John Hancock Financial | Lazard Global vs. Blackstone Secured Lending | Lazard Global vs. First Trust Specialty |
| Franklin Lifesmart vs. Queens Road Small | Franklin Lifesmart vs. Valic Company I | Franklin Lifesmart vs. Mutual Of America | Franklin Lifesmart vs. Fidelity Small Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world |