Correlation Between Lazard Enhanced and Jensen Portfolio
Can any of the company-specific risk be diversified away by investing in both Lazard Enhanced and Jensen Portfolio 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 Enhanced and Jensen Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Enhanced Opportunities and The Jensen Portfolio, you can compare the effects of market volatilities on Lazard Enhanced and Jensen Portfolio 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 Enhanced with a short position of Jensen Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Enhanced and Jensen Portfolio.
Diversification Opportunities for Lazard Enhanced and Jensen Portfolio
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lazard and Jensen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Enhanced Opportunities and The Jensen Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Portfolio and Lazard Enhanced 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 Enhanced Opportunities are associated (or correlated) with Jensen Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Portfolio has no effect on the direction of Lazard Enhanced i.e., Lazard Enhanced and Jensen Portfolio go up and down completely randomly.
Pair Corralation between Lazard Enhanced and Jensen Portfolio
Assuming the 90 days horizon Lazard Enhanced Opportunities is expected to generate 0.04 times more return on investment than Jensen Portfolio. However, Lazard Enhanced Opportunities is 27.84 times less risky than Jensen Portfolio. It trades about 0.44 of its potential returns per unit of risk. The Jensen Portfolio is currently generating about -0.11 per unit of risk. If you would invest 864.00 in Lazard Enhanced Opportunities on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Lazard Enhanced Opportunities or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Enhanced Opportunities vs. The Jensen Portfolio
Performance |
| Timeline |
| Lazard Enhanced Oppo |
| Jensen Portfolio |
Lazard Enhanced and Jensen Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Enhanced and Jensen Portfolio
The main advantage of trading using opposite Lazard Enhanced and Jensen Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Enhanced position performs unexpectedly, Jensen Portfolio 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 Jensen Portfolio will offset losses from the drop in Jensen Portfolio's long position.| Lazard Enhanced vs. Columbia Mortgage Opportunities | Lazard Enhanced vs. Pimco Capital Sec | Lazard Enhanced vs. Lazard Global Dynamic | Lazard Enhanced vs. Lazard Global Dynamic |
| Jensen Portfolio vs. Clipper Fund Inc | Jensen Portfolio vs. Parnassus E Equity | Jensen Portfolio vs. Mairs Power Growth | Jensen Portfolio vs. Sound Shore Fund |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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