Correlation Between Loomis Sayles and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Lazard Equity 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 Loomis Sayles and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Inflation and Lazard Equity Franchise, you can compare the effects of market volatilities on Loomis Sayles and Lazard Equity 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 Loomis Sayles with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Lazard Equity.
Diversification Opportunities for Loomis Sayles and Lazard Equity
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Lazard is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Loomis Sayles 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 Loomis Sayles Inflation are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Lazard Equity go up and down completely randomly.
Pair Corralation between Loomis Sayles and Lazard Equity
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.06 times less return on investment than Lazard Equity. But when comparing it to its historical volatility, Loomis Sayles Inflation is 2.79 times less risky than Lazard Equity. It trades about 0.2 of its potential returns per unit of risk. Lazard Equity Franchise is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 998.00 in Lazard Equity Franchise on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Lazard Equity Franchise or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Lazard Equity Franchise
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Lazard Equity Franchise |
Loomis Sayles and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Lazard Equity
The main advantage of trading using opposite Loomis Sayles and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Loomis Sayles vs. Smallcap Growth Fund | Loomis Sayles vs. Df Dent Small | Loomis Sayles vs. Lebenthal Lisanti Small | Loomis Sayles vs. Scout Small Cap |
| Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard International Quality | Lazard Equity vs. Lazard Small Mid Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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