Correlation Between Glg Intl and Lazard Short
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Lazard Short 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 Glg Intl and Lazard Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Lazard Short Duration, you can compare the effects of market volatilities on Glg Intl and Lazard Short 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 Glg Intl with a short position of Lazard Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Lazard Short.
Diversification Opportunities for Glg Intl and Lazard Short
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glg and Lazard is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Lazard Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Short Duration and Glg Intl 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 Glg Intl Small are associated (or correlated) with Lazard Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Short Duration has no effect on the direction of Glg Intl i.e., Glg Intl and Lazard Short go up and down completely randomly.
Pair Corralation between Glg Intl and Lazard Short
Assuming the 90 days horizon Glg Intl Small is expected to generate 7.79 times more return on investment than Lazard Short. However, Glg Intl is 7.79 times more volatile than Lazard Short Duration. It trades about 0.1 of its potential returns per unit of risk. Lazard Short Duration is currently generating about 0.13 per unit of risk. If you would invest 6,905 in Glg Intl Small on September 12, 2024 and sell it today you would earn a total of 1,872 from holding Glg Intl Small or generate 27.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Lazard Short Duration
Performance |
| Timeline |
| Glg Intl Small |
| Lazard Short Duration |
Glg Intl and Lazard Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Lazard Short
The main advantage of trading using opposite Glg Intl and Lazard Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Lazard Short 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 Lazard Short will offset losses from the drop in Lazard Short's long position.| Glg Intl vs. Western Asset High | Glg Intl vs. Ppm High Yield | Glg Intl vs. Artisan High Income | Glg Intl vs. Metropolitan West High |
| Lazard Short vs. Guidemark Smallmid Cap | Lazard Short vs. Glg Intl Small | Lazard Short vs. Mutual Of America | Lazard Short vs. Ab 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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