Correlation Between Guggenheim Risk and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Guggenheim Risk and Lazard Real 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 Real 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 Real Assets, you can compare the effects of market volatilities on Guggenheim Risk and Lazard Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Risk and Lazard Real.
Diversification Opportunities for Guggenheim Risk and Lazard Real
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guggenheim and Lazard is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Risk Managed and Lazard Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Real Assets 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Real Assets has no effect on the direction of Guggenheim Risk i.e., Guggenheim Risk and Lazard Real go up and down completely randomly.
Pair Corralation between Guggenheim Risk and Lazard Real
Assuming the 90 days horizon Guggenheim Risk Managed is expected to under-perform the Lazard Real. In addition to that, Guggenheim Risk is 1.32 times more volatile than Lazard Real Assets. It trades about -0.1 of its total potential returns per unit of risk. Lazard Real Assets is currently generating about -0.02 per unit of volatility. If you would invest 1,039 in Lazard Real Assets on September 12, 2024 and sell it today you would lose (3.00) from holding Lazard Real Assets or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Risk Managed vs. Lazard Real Assets
Performance |
| Timeline |
| Guggenheim Risk Managed |
| Lazard Real Assets |
Guggenheim Risk and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Risk and Lazard Real
The main advantage of trading using opposite Guggenheim Risk and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Risk position performs unexpectedly, Lazard Real 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 Real will offset losses from the drop in Lazard Real's long position.| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Lazard Global Listed |
| Lazard Real vs. Stone Ridge Diversified | Lazard Real vs. Fulcrum Diversified Absolute | Lazard Real vs. Guggenheim Diversified Income | Lazard Real vs. Wealthbuilder Conservative Allocation |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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