Correlation Between Lazard Us and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Lazard Us and Lazard Emerging 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 Us and Lazard Emerging 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 Lazard Emerging Markets, you can compare the effects of market volatilities on Lazard Us and Lazard Emerging 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 Us with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Lazard Emerging.
Diversification Opportunities for Lazard Us and Lazard Emerging
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Lazard is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Small Mid Cap and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets and Lazard Us 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of Lazard Us i.e., Lazard Us and Lazard Emerging go up and down completely randomly.
Pair Corralation between Lazard Us and Lazard Emerging
Assuming the 90 days horizon Lazard Small Mid Cap is expected to generate 1.66 times more return on investment than Lazard Emerging. However, Lazard Us is 1.66 times more volatile than Lazard Emerging Markets. It trades about 0.21 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 1,052 in Lazard Small Mid Cap on October 25, 2024 and sell it today you would earn a total of 44.00 from holding Lazard Small Mid Cap or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Lazard Small Mid Cap vs. Lazard Emerging Markets
Performance |
| Timeline |
| Lazard Small Mid |
| Lazard Emerging Markets |
Lazard Us and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Us and Lazard Emerging
The main advantage of trading using opposite Lazard Us and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Lazard Emerging 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 Emerging will offset losses from the drop in Lazard Emerging's long position.| Lazard Us vs. Lazard Small Mid Cap | Lazard Us vs. Lazard International Equity | Lazard Us vs. Lazard International Small | Lazard Us vs. Loomis Sayles Small |
| Lazard Emerging vs. Icon Information Technology | Lazard Emerging vs. Fidelity Advisor Technology | Lazard Emerging vs. Blackrock Science Technology | Lazard Emerging vs. Red Oak Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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