Correlation Between Lazard International and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Lazard International 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 Lazard International and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Pounders and Lazard Emerging Markets, you can compare the effects of market volatilities on Lazard International 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 Lazard International with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Emerging.
Diversification Opportunities for Lazard International and Lazard Emerging
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Lazard is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Pounders 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 Lazard International 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 Lazard International Pounders 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 Lazard International i.e., Lazard International and Lazard Emerging go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Emerging
Assuming the 90 days horizon Lazard International Pounders is expected to generate 1.0 times more return on investment than Lazard Emerging. However, Lazard International is 1.0 times more volatile than Lazard Emerging Markets. It trades about 0.02 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 1,697 in Lazard International Pounders on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Lazard International Pounders or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Pounders vs. Lazard Emerging Markets
Performance |
| Timeline |
| Lazard International |
| Lazard Emerging Markets |
Lazard International and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Emerging
The main advantage of trading using opposite Lazard International and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International 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.| Lazard International vs. Hennessy Bp Energy | Lazard International vs. Franklin Natural Resources | Lazard International vs. Icon Natural Resources | Lazard International vs. Thrivent Natural Resources |
| Lazard Emerging vs. Matthews Japan Fund | Lazard Emerging vs. Hennessy Japan Fund | Lazard Emerging vs. Basic Materials Fund | Lazard Emerging vs. Basic Materials 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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