Correlation Between Lazard Funds and Live Oak
Can any of the company-specific risk be diversified away by investing in both Lazard Funds and Live Oak 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 Funds and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Lazard Funds and Live Oak Health, you can compare the effects of market volatilities on Lazard Funds and Live Oak 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 Funds with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Funds and Live Oak.
Diversification Opportunities for Lazard Funds and Live Oak
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Live is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Lazard Funds and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health and Lazard Funds 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 The Lazard Funds are associated (or correlated) with Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Lazard Funds i.e., Lazard Funds and Live Oak go up and down completely randomly.
Pair Corralation between Lazard Funds and Live Oak
Assuming the 90 days horizon The Lazard Funds is expected to generate 1.52 times more return on investment than Live Oak. However, Lazard Funds is 1.52 times more volatile than Live Oak Health. It trades about 0.07 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.0 per unit of risk. 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 |
The Lazard Funds vs. Live Oak Health
Performance |
| Timeline |
| Lazard Funds |
| Live Oak Health |
Lazard Funds and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Funds and Live Oak
The main advantage of trading using opposite Lazard Funds and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Funds position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Lazard Funds vs. Live Oak Health | Lazard Funds vs. Baron Health Care | Lazard Funds vs. Delaware Healthcare Fund | Lazard Funds vs. Fidelity Advisor Health |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |