Correlation Between Live Oak and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Live Oak and Lazard Funds 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 Live Oak and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and The Lazard Funds, you can compare the effects of market volatilities on Live Oak and Lazard Funds 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 Live Oak with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Lazard Funds.
Diversification Opportunities for Live Oak and Lazard Funds
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Lazard is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Live Oak 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 Live Oak Health are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Live Oak i.e., Live Oak and Lazard Funds go up and down completely randomly.
Pair Corralation between Live Oak and Lazard Funds
Assuming the 90 days horizon Live Oak is expected to generate 55.93 times less return on investment than Lazard Funds. But when comparing it to its historical volatility, Live Oak Health is 1.52 times less risky than Lazard Funds. It trades about 0.0 of its potential returns per unit of risk. The Lazard Funds is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 844.00 in The Lazard Funds on September 12, 2024 and sell it today you would earn a total of 360.00 from holding The Lazard Funds or generate 42.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. The Lazard Funds
Performance |
| Timeline |
| Live Oak Health |
| Lazard Funds |
Live Oak and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Lazard Funds
The main advantage of trading using opposite Live Oak and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Lazard Funds 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 Funds will offset losses from the drop in Lazard Funds' long position.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Lazard Funds vs. Live Oak Health | Lazard Funds vs. Baron Health Care | Lazard Funds vs. Delaware Healthcare Fund | Lazard Funds vs. Fidelity Advisor Health |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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