Correlation Between Gmo Global and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Gmo Global and Lazard Enhanced 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 Gmo Global and Lazard Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Gmo Global and Lazard Enhanced 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 Gmo Global with a short position of Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Lazard Enhanced.
Diversification Opportunities for Gmo Global and Lazard Enhanced
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gmo and Lazard is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo and Gmo 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 Gmo Global Equity are associated (or correlated) with Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Gmo Global i.e., Gmo Global and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Gmo Global and Lazard Enhanced
Assuming the 90 days horizon Gmo Global Equity is expected to generate 4.65 times more return on investment than Lazard Enhanced. However, Gmo Global is 4.65 times more volatile than Lazard Enhanced Opportunities. It trades about 0.15 of its potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.47 per unit of risk. If you would invest 2,977 in Gmo Global Equity on September 15, 2024 and sell it today you would earn a total of 41.00 from holding Gmo Global Equity or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Gmo Global Equity |
| Lazard Enhanced Oppo |
Gmo Global and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Lazard Enhanced
The main advantage of trading using opposite Gmo Global and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global position performs unexpectedly, Lazard Enhanced 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 Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Gmo Global vs. Icon Information Technology | Gmo Global vs. Blackrock Science Technology | Gmo Global vs. Firsthand Technology Opportunities | Gmo Global vs. Towpath Technology |
| Lazard Enhanced vs. Franklin High Yield | Lazard Enhanced vs. Morningstar Defensive Bond | Lazard Enhanced vs. Dreyfusstandish Global Fixed | Lazard Enhanced vs. T Rowe Price |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |