Correlation Between Lazard Equity and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Lazard Equity and Lord Abbett 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 Equity and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Equity Franchise and Lord Abbett Emerging, you can compare the effects of market volatilities on Lazard Equity and Lord Abbett 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 Equity with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Equity and Lord Abbett.
Diversification Opportunities for Lazard Equity and Lord Abbett
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lazard and Lord is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Equity Franchise and Lord Abbett Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Emerging and Lazard Equity 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 Equity Franchise are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Emerging has no effect on the direction of Lazard Equity i.e., Lazard Equity and Lord Abbett go up and down completely randomly.
Pair Corralation between Lazard Equity and Lord Abbett
Assuming the 90 days horizon Lazard Equity Franchise is expected to generate 3.09 times more return on investment than Lord Abbett. However, Lazard Equity is 3.09 times more volatile than Lord Abbett Emerging. It trades about 0.29 of its potential returns per unit of risk. Lord Abbett Emerging is currently generating about 0.18 per unit of risk. If you would invest 827.00 in Lazard Equity Franchise on November 3, 2024 and sell it today you would earn a total of 39.00 from holding Lazard Equity Franchise or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Equity Franchise vs. Lord Abbett Emerging
Performance |
| Timeline |
| Lazard Equity Franchise |
| Lord Abbett Emerging |
Lazard Equity and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Equity and Lord Abbett
The main advantage of trading using opposite Lazard Equity and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Equity position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Lazard Equity vs. Gmo Global Equity | Lazard Equity vs. Dreyfusstandish Global Fixed | Lazard Equity vs. Artisan Select Equity | Lazard Equity vs. Aqr Equity Market |
| Lord Abbett vs. The Hartford Emerging | Lord Abbett vs. Siit Emerging Markets | Lord Abbett vs. Vy Jpmorgan Emerging | Lord Abbett vs. Angel Oak Multi Strategy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |