Correlation Between Iaadx and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Iaadx and Lazard Emerging 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 Iaadx and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iaadx and Lazard Emerging Markets, you can compare the effects of market volatilities on Iaadx and Lazard Emerging 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 Iaadx with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iaadx and Lazard Emerging.
Diversification Opportunities for Iaadx and Lazard Emerging
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iaadx and Lazard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Iaadx and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets and Iaadx 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 Iaadx are associated (or correlated) with Lazard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of Iaadx i.e., Iaadx and Lazard Emerging go up and down completely randomly.
Pair Corralation between Iaadx and Lazard Emerging
If you would invest 898.00 in Iaadx on November 30, 2024 and sell it today you would earn a total of 28.00 from holding Iaadx or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 2.5% |
| Values | Daily Returns |
Iaadx vs. Lazard Emerging Markets
Performance |
| Timeline |
| Iaadx |
| Lazard Emerging Markets |
Risk-Adjusted Performance
OK
Weak | Strong |
Iaadx and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iaadx and Lazard Emerging
The main advantage of trading using opposite Iaadx and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iaadx position performs unexpectedly, Lazard Emerging 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 Emerging will offset losses from the drop in Lazard Emerging's long position.| Iaadx vs. Harbor Diversified International | Iaadx vs. Aqr Diversified Arbitrage | Iaadx vs. Madison Diversified Income | Iaadx vs. Lord Abbett Diversified |
| Lazard Emerging vs. Blackrock Large Cap | Lazard Emerging vs. John Hancock Variable | Lazard Emerging vs. Siit Large Cap | Lazard Emerging vs. M Large 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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