Correlation Between Lazard Global and Deutsche Global
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Deutsche 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 Deutsche 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 Deutsche Global Infrastructure, you can compare the effects of market volatilities on Lazard Global and Deutsche 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 Deutsche Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Deutsche Global.
Diversification Opportunities for Lazard Global and Deutsche Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lazard and Deutsche is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Listed and Deutsche Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Global Infr 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 Deutsche Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Global Infr has no effect on the direction of Lazard Global i.e., Lazard Global and Deutsche Global go up and down completely randomly.
Pair Corralation between Lazard Global and Deutsche Global
Assuming the 90 days horizon Lazard Global is expected to generate 1.36 times less return on investment than Deutsche Global. But when comparing it to its historical volatility, Lazard Global Listed is 1.33 times less risky than Deutsche Global. It trades about 0.25 of its potential returns per unit of risk. Deutsche Global Infrastructure is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,645 in Deutsche Global Infrastructure on September 4, 2024 and sell it today you would earn a total of 65.00 from holding Deutsche Global Infrastructure or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Global Listed vs. Deutsche Global Infrastructure
Performance |
| Timeline |
| Lazard Global Listed |
| Deutsche Global Infr |
Lazard Global and Deutsche Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Global and Deutsche Global
The main advantage of trading using opposite Lazard Global and Deutsche Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Deutsche 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 Deutsche Global will offset losses from the drop in Deutsche Global's long position.| Lazard Global vs. Lazard Global Listed | Lazard Global vs. Wcm Focused International | Lazard Global vs. Tortoise Mlp Pipeline | Lazard Global vs. Blkrk Lc Cr |
| Deutsche Global vs. Fidelity Real Estate | Deutsche Global vs. Pimco Incme Fund | Deutsche Global vs. Ab High Income | Deutsche Global vs. Asg Managed Futures |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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