Correlation Between Alternative Asset and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Alternative Asset 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 Alternative Asset and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternative Asset Allocation and Lazard Emerging Markets, you can compare the effects of market volatilities on Alternative Asset 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 Alternative Asset with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternative Asset and Lazard Emerging.
Diversification Opportunities for Alternative Asset and Lazard Emerging
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alternative and Lazard is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Alternative Asset Allocation 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 Alternative 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 Alternative Asset Allocation 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 Alternative Asset i.e., Alternative Asset and Lazard Emerging go up and down completely randomly.
Pair Corralation between Alternative Asset and Lazard Emerging
Assuming the 90 days horizon Alternative Asset is expected to generate 1.7 times less return on investment than Lazard Emerging. But when comparing it to its historical volatility, Alternative Asset Allocation is 3.99 times less risky than Lazard Emerging. It trades about 0.13 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 873.00 in Lazard Emerging Markets on September 12, 2024 and sell it today you would earn a total of 215.00 from holding Lazard Emerging Markets or generate 24.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alternative Asset Allocation vs. Lazard Emerging Markets
Performance |
| Timeline |
| Alternative Asset |
| Lazard Emerging Markets |
Alternative Asset and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternative Asset and Lazard Emerging
The main advantage of trading using opposite Alternative Asset and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternative Asset 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.| Alternative Asset vs. Blackrock Alternative Capital | Alternative Asset vs. Aqr Style Premia | Alternative Asset vs. Goldman Sachs Absolute | Alternative Asset vs. Aquagold International |
| Lazard Emerging vs. Rational Strategic Allocation | Lazard Emerging vs. Touchstone Large Cap | Lazard Emerging vs. T Rowe Price | Lazard Emerging vs. Alternative Asset Allocation |
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.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |