Correlation Between Transamerica Asset and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Transamerica Asset and Lazard Equity 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 Transamerica Asset and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Asset Allocation and Lazard Equity Franchise, you can compare the effects of market volatilities on Transamerica Asset and Lazard Equity 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 Transamerica Asset with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Asset and Lazard Equity.
Diversification Opportunities for Transamerica Asset and Lazard Equity
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transamerica and Lazard is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Asset Allocation and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Transamerica Asset 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 Transamerica Asset Allocation are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Transamerica Asset i.e., Transamerica Asset and Lazard Equity go up and down completely randomly.
Pair Corralation between Transamerica Asset and Lazard Equity
Assuming the 90 days horizon Transamerica Asset Allocation is expected to generate 0.63 times more return on investment than Lazard Equity. However, Transamerica Asset Allocation is 1.59 times less risky than Lazard Equity. It trades about 0.09 of its potential returns per unit of risk. Lazard Equity Franchise is currently generating about 0.01 per unit of risk. If you would invest 1,070 in Transamerica Asset Allocation on September 4, 2024 and sell it today you would earn a total of 327.00 from holding Transamerica Asset Allocation or generate 30.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Asset Allocation vs. Lazard Equity Franchise
Performance |
| Timeline |
| Transamerica Asset |
| Lazard Equity Franchise |
Transamerica Asset and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Asset and Lazard Equity
The main advantage of trading using opposite Transamerica Asset and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Asset position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Transamerica Asset vs. 361 Global Longshort | Transamerica Asset vs. Barings Global Floating | Transamerica Asset vs. Commonwealth Global Fund | Transamerica Asset vs. Ab Global Bond |
| Lazard Equity vs. Qs Small Capitalization | Lazard Equity vs. Touchstone Small Cap | Lazard Equity vs. Champlain Small | Lazard Equity vs. Kinetics Small 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |