Correlation Between Large Cap and Lazard Strategic
Can any of the company-specific risk be diversified away by investing in both Large Cap and Lazard Strategic 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 Large Cap and Lazard Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Large Cap Growth Profund and Lazard Strategic Equity, you can compare the effects of market volatilities on Large Cap and Lazard Strategic 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 Large Cap with a short position of Lazard Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large Cap and Lazard Strategic.
Diversification Opportunities for Large Cap and Lazard Strategic
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Large and Lazard is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Large Cap Growth Profund and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Large Cap 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 Large Cap Growth Profund are associated (or correlated) with Lazard Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Large Cap i.e., Large Cap and Lazard Strategic go up and down completely randomly.
Pair Corralation between Large Cap and Lazard Strategic
Assuming the 90 days horizon Large Cap Growth Profund is expected to generate 0.96 times more return on investment than Lazard Strategic. However, Large Cap Growth Profund is 1.04 times less risky than Lazard Strategic. It trades about -0.11 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about -0.36 per unit of risk. If you would invest 4,727 in Large Cap Growth Profund on October 16, 2024 and sell it today you would lose (125.00) from holding Large Cap Growth Profund or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Large Cap Growth Profund vs. Lazard Strategic Equity
Performance |
| Timeline |
| Large Cap Growth |
| Lazard Strategic Equity |
Large Cap and Lazard Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Large Cap and Lazard Strategic
The main advantage of trading using opposite Large Cap and Lazard Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large Cap position performs unexpectedly, Lazard Strategic 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 Strategic will offset losses from the drop in Lazard Strategic's long position.| Large Cap vs. Alger Health Sciences | Large Cap vs. Fidelity Advisor Health | Large Cap vs. Prudential Health Sciences | Large Cap vs. Delaware Healthcare Fund |
| Lazard Strategic vs. Profunds Large Cap Growth | Lazard Strategic vs. Fundamental Large Cap | Lazard Strategic vs. Qs Large Cap | Lazard Strategic vs. Large Cap Growth Profund |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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