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 Corporate Income 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
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lazard and Lazard is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Corporate Income 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 Corporate Income 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 Us is expected to generate 1.76 times less return on investment than Lazard Emerging. But when comparing it to its historical volatility, Lazard Corporate Income is 3.61 times less risky than Lazard Emerging. It trades about 0.16 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,561 in Lazard Emerging Markets on November 28, 2024 and sell it today you would earn a total of 349.00 from holding Lazard Emerging Markets or generate 22.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Corporate Income vs. Lazard Emerging Markets
Performance |
| Timeline |
| Lazard Corporate Income |
| 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. Aqr Risk Parity | Lazard Us vs. Siit High Yield | Lazard Us vs. Ab High Income | Lazard Us vs. Gmo High Yield |
| Lazard Emerging vs. Tfa Alphagen Growth | Lazard Emerging vs. Credit Suisse Multialternative | Lazard Emerging vs. Buffalo High Yield | Lazard Emerging vs. Rbc Emerging Markets |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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