Correlation Between Lazard Global and Mondrian Global
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Mondrian 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 Lazard Global and Mondrian Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Global Listed and Mondrian Global Listed, you can compare the effects of market volatilities on Lazard Global and Mondrian 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 Lazard Global with a short position of Mondrian Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Mondrian Global.
Diversification Opportunities for Lazard Global and Mondrian Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Mondrian is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Listed and Mondrian Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondrian Global Listed 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 Listed are associated (or correlated) with Mondrian Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondrian Global Listed has no effect on the direction of Lazard Global i.e., Lazard Global and Mondrian Global go up and down completely randomly.
Pair Corralation between Lazard Global and Mondrian Global
Assuming the 90 days horizon Lazard Global Listed is expected to generate 0.74 times more return on investment than Mondrian Global. However, Lazard Global Listed is 1.36 times less risky than Mondrian Global. It trades about 0.26 of its potential returns per unit of risk. Mondrian Global Listed is currently generating about -0.09 per unit of risk. If you would invest 1,586 in Lazard Global Listed on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Lazard Global Listed or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Listed vs. Mondrian Global Listed
Performance |
| Timeline |
| Lazard Global Listed |
| Mondrian Global Listed |
Lazard Global and Mondrian Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Mondrian Global
The main advantage of trading using opposite Lazard Global and Mondrian Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Mondrian 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 Mondrian Global will offset losses from the drop in Mondrian Global's long position.| Lazard Global vs. International Fund International | Lazard Global vs. Lazard Global Listed | Lazard Global vs. Large Cap Growth | Lazard Global vs. The Value Fund |
| Mondrian Global vs. Mondrian Emerging Markets | Mondrian Global vs. Mondrian Global Equity | Mondrian Global vs. Mondrian International Value | Mondrian Global vs. Q3 All Weather Sector |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |