Correlation Between Icon Natural and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Icon Natural 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 Icon Natural and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Lazard Sustainable Equity, you can compare the effects of market volatilities on Icon Natural 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 Icon Natural with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Lazard Us.
Diversification Opportunities for Icon Natural and Lazard Us
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Icon and Lazard is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources 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 Icon Natural 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 Icon Natural Resources 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 Icon Natural i.e., Icon Natural and Lazard Us go up and down completely randomly.
Pair Corralation between Icon Natural and Lazard Us
Assuming the 90 days horizon Icon Natural Resources is expected to generate 1.5 times more return on investment than Lazard Us. However, Icon Natural is 1.5 times more volatile than Lazard Sustainable Equity. It trades about 0.06 of its potential returns per unit of risk. Lazard Sustainable Equity is currently generating about 0.07 per unit of risk. If you would invest 1,555 in Icon Natural Resources on September 4, 2024 and sell it today you would earn a total of 280.00 from holding Icon Natural Resources or generate 18.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Natural Resources vs. Lazard Sustainable Equity
Performance |
| Timeline |
| Icon Natural Resources |
| Lazard Sustainable Equity |
Icon Natural and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Lazard Us
The main advantage of trading using opposite Icon Natural and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural 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.| Icon Natural vs. Icon Financial Fund | Icon Natural vs. Dreyfus Natural Resources | Icon Natural vs. Icon Natural Resources | Icon Natural vs. Icon Information Technology |
| Lazard Us vs. Lazard Global Dynamic | Lazard Us vs. Lazard Global Dynamic | Lazard Us vs. Lazard International Quality | Lazard Us vs. Lazard Small Mid 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |