Correlation Between Lazard Equity and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Lazard Equity 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 Equity 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 Equity Franchise and Lazard Emerging Markets, you can compare the effects of market volatilities on Lazard Equity 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 Equity with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Equity and Lazard Emerging.
Diversification Opportunities for Lazard Equity and Lazard Emerging
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Lazard is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Equity Franchise 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 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 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 Equity i.e., Lazard Equity and Lazard Emerging go up and down completely randomly.
Pair Corralation between Lazard Equity and Lazard Emerging
Assuming the 90 days horizon Lazard Equity Franchise is expected to generate 1.15 times more return on investment than Lazard Emerging. However, Lazard Equity is 1.15 times more volatile than Lazard Emerging Markets. It trades about 0.05 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 834.00 in Lazard Equity Franchise on October 25, 2024 and sell it today you would earn a total of 6.00 from holding Lazard Equity Franchise or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Lazard Equity Franchise vs. Lazard Emerging Markets
Performance |
| Timeline |
| Lazard Equity Franchise |
| Lazard Emerging Markets |
Lazard Equity and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Equity and Lazard Emerging
The main advantage of trading using opposite Lazard Equity and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Equity 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 Equity vs. Tiaa Cref Small Cap Blend | Lazard Equity vs. Jpmorgan Diversified Fund | Lazard Equity vs. Jhancock Diversified Macro | Lazard Equity vs. T Rowe Price |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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