Correlation Between Lazard International and International Fund
Can any of the company-specific risk be diversified away by investing in both Lazard International and International Fund 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 International Fund 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 International Fund International, you can compare the effects of market volatilities on Lazard International and International Fund 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 International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and International Fund.
Diversification Opportunities for Lazard International and International Fund
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and International is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Strategic and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Lazard International i.e., Lazard International and International Fund go up and down completely randomly.
Pair Corralation between Lazard International and International Fund
Assuming the 90 days horizon Lazard International Strategic is expected to under-perform the International Fund. In addition to that, Lazard International is 1.04 times more volatile than International Fund International. It trades about -0.11 of its total potential returns per unit of risk. International Fund International is currently generating about 0.1 per unit of volatility. If you would invest 3,656 in International Fund International on August 29, 2024 and sell it today you would earn a total of 54.00 from holding International Fund International or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lazard International Strategic vs. International Fund Internation
Performance |
| Timeline |
| Lazard International |
| International Fund |
Lazard International and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and International Fund
The main advantage of trading using opposite Lazard International and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, International Fund 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 International Fund will offset losses from the drop in International Fund's long position.The idea behind Lazard International Strategic and International Fund International 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.
| International Fund vs. Large Cap Growth | International Fund vs. Parnassus Mid Cap | International Fund vs. Parnassus E Equity | International Fund vs. Doubleline Total Return |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |