Correlation Between Lazard International and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Lazard International and Loomis Sayles 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 International and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Equity and Loomis Sayles Small, you can compare the effects of market volatilities on Lazard International and Loomis Sayles 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 International with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Loomis Sayles.
Diversification Opportunities for Lazard International and Loomis Sayles
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lazard and Loomis is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Equity and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and Lazard International 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 International Equity are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Small has no effect on the direction of Lazard International i.e., Lazard International and Loomis Sayles go up and down completely randomly.
Pair Corralation between Lazard International and Loomis Sayles
Assuming the 90 days horizon Lazard International Equity is expected to generate 0.57 times more return on investment than Loomis Sayles. However, Lazard International Equity is 1.76 times less risky than Loomis Sayles. It trades about -0.03 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about -0.06 per unit of risk. If you would invest 1,811 in Lazard International Equity on November 28, 2024 and sell it today you would lose (55.00) from holding Lazard International Equity or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Equity vs. Loomis Sayles Small
Performance |
| Timeline |
| Lazard International |
| Loomis Sayles Small |
Lazard International and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Loomis Sayles
The main advantage of trading using opposite Lazard International and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Lazard International vs. Lazard International Equity | Lazard International vs. Federated Mdt Large | Lazard International vs. Baird Midcap Fund | Lazard International vs. Lazard International Small |
| Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. American Beacon Large |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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