Correlation Between Lazard Small and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Lazard Small 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 Lazard Small and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Small Mid Cap and The Lazard Funds, you can compare the effects of market volatilities on Lazard Small 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 Lazard Small with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Small and Lazard Funds.
Diversification Opportunities for Lazard Small and Lazard Funds
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and Lazard is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Small Mid Cap and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Lazard Small 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 Small Mid Cap 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 Lazard Small i.e., Lazard Small and Lazard Funds go up and down completely randomly.
Pair Corralation between Lazard Small and Lazard Funds
Assuming the 90 days horizon Lazard Small is expected to generate 1.42 times less return on investment than Lazard Funds. In addition to that, Lazard Small is 1.12 times more volatile than The Lazard Funds. It trades about 0.06 of its total potential returns per unit of risk. The Lazard Funds is currently generating about 0.1 per unit of volatility. If you would invest 1,059 in The Lazard Funds on September 3, 2024 and sell it today you would earn a total of 154.00 from holding The Lazard Funds or generate 14.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Small Mid Cap vs. The Lazard Funds
Performance |
| Timeline |
| Lazard Small Mid |
| Lazard Funds |
Lazard Small and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Small and Lazard Funds
The main advantage of trading using opposite Lazard Small and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Small 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.| Lazard Small vs. Vanguard Small Cap Index | Lazard Small vs. Vanguard Small Cap Index | Lazard Small vs. Vanguard Small Cap Index | Lazard Small vs. Vanguard Small Cap Index |
| Lazard Funds vs. Qs Global Equity | Lazard Funds vs. Ab Global Risk | Lazard Funds vs. Ab Global Real | Lazard Funds vs. 361 Global Longshort |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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