Correlation Between Kinetics Global and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Kinetics Global 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 Kinetics Global and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Global Fund and Lazard Emerging Markets, you can compare the effects of market volatilities on Kinetics Global 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 Kinetics Global with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Lazard Emerging.
Diversification Opportunities for Kinetics Global and Lazard Emerging
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Lazard is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund 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 Kinetics Global 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 Kinetics Global Fund 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 Kinetics Global i.e., Kinetics Global and Lazard Emerging go up and down completely randomly.
Pair Corralation between Kinetics Global and Lazard Emerging
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 2.26 times more return on investment than Lazard Emerging. However, Kinetics Global is 2.26 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 -0.33 per unit of risk. If you would invest 1,554 in Kinetics Global Fund on October 9, 2024 and sell it today you would lose (12.00) from holding Kinetics Global Fund or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Lazard Emerging Markets
Performance |
| Timeline |
| Kinetics Global |
| Lazard Emerging Markets |
Kinetics Global and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Lazard Emerging
The main advantage of trading using opposite Kinetics Global and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global 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.| Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Market Opportunities |
| Lazard Emerging vs. Lazard International Quality | Lazard Emerging vs. Lazard Small Mid Cap | Lazard Emerging vs. Lazard Equity Franchise | Lazard Emerging vs. Lazard Emerging Markets |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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