Correlation Between Guggenheim Risk and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Guggenheim Risk and Lazard 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 Guggenheim Risk and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Risk Managed and Lazard Global Listed, you can compare the effects of market volatilities on Guggenheim Risk and Lazard 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 Guggenheim Risk with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Risk and Lazard Global.
Diversification Opportunities for Guggenheim Risk and Lazard Global
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guggenheim and Lazard is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Risk Managed and Lazard Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Listed and Guggenheim Risk 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 Guggenheim Risk Managed are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Listed has no effect on the direction of Guggenheim Risk i.e., Guggenheim Risk and Lazard Global go up and down completely randomly.
Pair Corralation between Guggenheim Risk and Lazard Global
Assuming the 90 days horizon Guggenheim Risk Managed is expected to generate 1.5 times more return on investment than Lazard Global. However, Guggenheim Risk is 1.5 times more volatile than Lazard Global Listed. It trades about 0.15 of its potential returns per unit of risk. Lazard Global Listed is currently generating about 0.12 per unit of risk. If you would invest 3,468 in Guggenheim Risk Managed on August 30, 2024 and sell it today you would earn a total of 103.00 from holding Guggenheim Risk Managed or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Risk Managed vs. Lazard Global Listed
Performance |
| Timeline |
| Guggenheim Risk Managed |
| Lazard Global Listed |
Guggenheim Risk and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Risk and Lazard Global
The main advantage of trading using opposite Guggenheim Risk and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Risk position performs unexpectedly, Lazard 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 Lazard Global will offset losses from the drop in Lazard Global's long position.| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Real Estate Fund | Guggenheim Risk vs. Cohen And Steers | Guggenheim Risk vs. Guggenheim Total Return |
| Lazard Global vs. International Fund International | Lazard Global vs. Lazard Global Listed | Lazard Global vs. Large Cap Growth | Lazard Global vs. The Value Fund |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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