Correlation Between Lazard International and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Lazard International and Growth Strategy 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 Growth Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Equity and Growth Strategy Fund, you can compare the effects of market volatilities on Lazard International and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Growth Strategy.
Diversification Opportunities for Lazard International and Growth Strategy
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and GROWTH is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Equity and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Equity are associated (or correlated) with Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Lazard International i.e., Lazard International and Growth Strategy go up and down completely randomly.
Pair Corralation between Lazard International and Growth Strategy
Assuming the 90 days horizon Lazard International Equity is expected to generate 1.19 times more return on investment than Growth Strategy. However, Lazard International is 1.19 times more volatile than Growth Strategy Fund. It trades about 0.08 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.07 per unit of risk. If you would invest 949.00 in Lazard International Equity on September 3, 2024 and sell it today you would earn a total of 318.00 from holding Lazard International Equity or generate 33.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Equity vs. Growth Strategy Fund
Performance |
| Timeline |
| Lazard International |
| Growth Strategy |
Lazard International and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Growth Strategy
The main advantage of trading using opposite Lazard International and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Lazard International vs. Angel Oak Multi Strategy | Lazard International vs. Ep Emerging Markets | Lazard International vs. Nasdaq 100 2x Strategy | Lazard International vs. Growth Strategy Fund |
| Growth Strategy vs. American Funds The | Growth Strategy vs. American Funds The | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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