Correlation Between Lazard Developing and Equity Series
Can any of the company-specific risk be diversified away by investing in both Lazard Developing and Equity Series 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 Developing and Equity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Developing Markets and Equity Series Class, you can compare the effects of market volatilities on Lazard Developing and Equity Series 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 Developing with a short position of Equity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Developing and Equity Series.
Diversification Opportunities for Lazard Developing and Equity Series
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Equity is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Developing Markets and Equity Series Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Series Class and Lazard Developing 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 Developing Markets are associated (or correlated) with Equity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Series Class has no effect on the direction of Lazard Developing i.e., Lazard Developing and Equity Series go up and down completely randomly.
Pair Corralation between Lazard Developing and Equity Series
Assuming the 90 days horizon Lazard Developing Markets is expected to generate 0.78 times more return on investment than Equity Series. However, Lazard Developing Markets is 1.28 times less risky than Equity Series. It trades about 0.09 of its potential returns per unit of risk. Equity Series Class is currently generating about 0.02 per unit of risk. If you would invest 1,219 in Lazard Developing Markets on November 3, 2024 and sell it today you would earn a total of 135.00 from holding Lazard Developing Markets or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Developing Markets vs. Equity Series Class
Performance |
| Timeline |
| Lazard Developing Markets |
| Equity Series Class |
Lazard Developing and Equity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Developing and Equity Series
The main advantage of trading using opposite Lazard Developing and Equity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Developing position performs unexpectedly, Equity Series 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 Equity Series will offset losses from the drop in Equity Series' long position.| Lazard Developing vs. Equity Series Class | Lazard Developing vs. Dreyfus International Bond | Lazard Developing vs. Blackrock Hi Yld | Lazard Developing vs. Heartland Value Plus |
| Equity Series vs. Large Cap Fund | Equity Series vs. Wasatch Large Cap | Equity Series vs. Westcore Plus Bond | Equity Series vs. Aberdeen Global High |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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