Correlation Between Lazard International and Delaware Value
Can any of the company-specific risk be diversified away by investing in both Lazard International and Delaware Value 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 International and Delaware Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Strategic and Delaware Value Fund, you can compare the effects of market volatilities on Lazard International and Delaware Value 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 International with a short position of Delaware Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Delaware Value.
Diversification Opportunities for Lazard International and Delaware Value
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Delaware is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Strategic and Delaware Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Value and Lazard International 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 International Strategic are associated (or correlated) with Delaware Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Value has no effect on the direction of Lazard International i.e., Lazard International and Delaware Value go up and down completely randomly.
Pair Corralation between Lazard International and Delaware Value
Assuming the 90 days horizon Lazard International Strategic is expected to under-perform the Delaware Value. In addition to that, Lazard International is 1.27 times more volatile than Delaware Value Fund. It trades about -0.12 of its total potential returns per unit of risk. Delaware Value Fund is currently generating about 0.13 per unit of volatility. If you would invest 1,819 in Delaware Value Fund on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Delaware Value Fund or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Strategic vs. Delaware Value Fund
Performance |
| Timeline |
| Lazard International |
| Delaware Value |
Lazard International and Delaware Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Delaware Value
The main advantage of trading using opposite Lazard International and Delaware Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Delaware Value 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 Delaware Value will offset losses from the drop in Delaware Value's long position.The idea behind Lazard International Strategic and Delaware Value Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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