Correlation Between The Hartford and Lazard Us
Can any of the company-specific risk be diversified away by investing in both The Hartford and Lazard Us 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 The Hartford and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Emerging and Lazard Sustainable Equity, you can compare the effects of market volatilities on The Hartford and Lazard Us 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 The Hartford with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Lazard Us.
Diversification Opportunities for The Hartford and Lazard Us
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THE and Lazard is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging and Lazard Sustainable Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Sustainable Equity and The Hartford 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 The Hartford Emerging are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Sustainable Equity has no effect on the direction of The Hartford i.e., The Hartford and Lazard Us go up and down completely randomly.
Pair Corralation between The Hartford and Lazard Us
Assuming the 90 days horizon The Hartford is expected to generate 1.91 times less return on investment than Lazard Us. But when comparing it to its historical volatility, The Hartford Emerging is 1.81 times less risky than Lazard Us. It trades about 0.06 of its potential returns per unit of risk. Lazard Sustainable Equity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,242 in Lazard Sustainable Equity on September 5, 2024 and sell it today you would earn a total of 310.00 from holding Lazard Sustainable Equity or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
The Hartford Emerging vs. Lazard Sustainable Equity
Performance |
| Timeline |
| Hartford Emerging |
| Lazard Sustainable Equity |
The Hartford and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Lazard Us
The main advantage of trading using opposite The Hartford and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.| The Hartford vs. The Hartford Small | The Hartford vs. Ab Small Cap | The Hartford vs. Us Small Cap | The Hartford vs. Small Pany Growth |
| Lazard Us vs. The Hartford Emerging | Lazard Us vs. Mondrian Emerging Markets | Lazard Us vs. The Emerging Markets | Lazard Us vs. Western Assets Emerging |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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