Correlation Between Lazard Emerging and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Lazard Emerging and Lazard Equity 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 Emerging and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Emerging Markets and Lazard Equity Franchise, you can compare the effects of market volatilities on Lazard Emerging and Lazard Equity 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 Emerging with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Emerging and Lazard Equity.
Diversification Opportunities for Lazard Emerging and Lazard Equity
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lazard and Lazard is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Emerging Markets and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Lazard Emerging 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 Emerging Markets are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Lazard Emerging i.e., Lazard Emerging and Lazard Equity go up and down completely randomly.
Pair Corralation between Lazard Emerging and Lazard Equity
Assuming the 90 days horizon Lazard Emerging Markets is expected to under-perform the Lazard Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard Emerging Markets is 1.24 times less risky than Lazard Equity. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Lazard Equity Franchise is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Lazard Equity Franchise on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Lazard Equity Franchise or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Emerging Markets vs. Lazard Equity Franchise
Performance |
| Timeline |
| Lazard Emerging Markets |
| Lazard Equity Franchise |
Lazard Emerging and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Emerging and Lazard Equity
The main advantage of trading using opposite Lazard Emerging and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Emerging position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Lazard Emerging vs. Matthews Japan Fund | Lazard Emerging vs. Hennessy Japan Fund | Lazard Emerging vs. Basic Materials Fund | Lazard Emerging vs. Basic Materials Fund |
| Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard Global Dynamic | Lazard Equity vs. Lazard International Quality | Lazard Equity vs. Lazard Small Mid Cap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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