Correlation Between Lazard Global and The Value
Can any of the company-specific risk be diversified away by investing in both Lazard Global and The Value 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 The Value 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 The Value Fund, you can compare the effects of market volatilities on Lazard Global and The Value 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 The Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and The Value.
Diversification Opportunities for Lazard Global and The Value
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lazard and The is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Listed and The Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund 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 The Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund has no effect on the direction of Lazard Global i.e., Lazard Global and The Value go up and down completely randomly.
Pair Corralation between Lazard Global and The Value
Assuming the 90 days horizon Lazard Global is expected to generate 1.8 times less return on investment than The Value. But when comparing it to its historical volatility, Lazard Global Listed is 1.37 times less risky than The Value. It trades about 0.24 of its potential returns per unit of risk. The Value Fund is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,442 in The Value Fund on September 1, 2024 and sell it today you would earn a total of 173.00 from holding The Value Fund or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Listed vs. The Value Fund
Performance |
| Timeline |
| Lazard Global Listed |
| Value Fund |
Lazard Global and The Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and The Value
The main advantage of trading using opposite Lazard Global and The Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, The Value 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 The Value will offset losses from the drop in The Value's long position.| Lazard Global vs. International Fund International | Lazard Global vs. Large Cap Growth | Lazard Global vs. The Value Fund | Lazard Global vs. Parnassus Endeavor Fund |
| The Value vs. Cullen High Dividend | The Value vs. Lazard Global Listed | The Value vs. The Bond Fund | The Value vs. Aquagold International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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