Correlation Between Lazard Global and Frontier Mfg
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Frontier Mfg 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 Frontier Mfg 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 Frontier Mfg E, you can compare the effects of market volatilities on Lazard Global and Frontier Mfg 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 Frontier Mfg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Frontier Mfg.
Diversification Opportunities for Lazard Global and Frontier Mfg
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lazard and Frontier is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Listed and Frontier Mfg E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Mfg E 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 Frontier Mfg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Mfg E has no effect on the direction of Lazard Global i.e., Lazard Global and Frontier Mfg go up and down completely randomly.
Pair Corralation between Lazard Global and Frontier Mfg
Assuming the 90 days horizon Lazard Global Listed is expected to generate 0.85 times more return on investment than Frontier Mfg. However, Lazard Global Listed is 1.18 times less risky than Frontier Mfg. It trades about 0.06 of its potential returns per unit of risk. Frontier Mfg E is currently generating about 0.04 per unit of risk. If you would invest 1,433 in Lazard Global Listed on September 1, 2024 and sell it today you would earn a total of 203.00 from holding Lazard Global Listed or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Lazard Global Listed vs. Frontier Mfg E
Performance |
| Timeline |
| Lazard Global Listed |
| Frontier Mfg E |
Lazard Global and Frontier Mfg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Frontier Mfg
The main advantage of trading using opposite Lazard Global and Frontier Mfg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Frontier Mfg 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 Frontier Mfg will offset losses from the drop in Frontier Mfg'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 |
| Frontier Mfg vs. Frontier Mfg E | Frontier Mfg vs. Alpine Global Infrastructure | Frontier Mfg vs. Real Estate Fund | Frontier Mfg vs. Dow 2x Strategy |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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