Correlation Between Lazard International and Virtus High
Can any of the company-specific risk be diversified away by investing in both Lazard International and Virtus High 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 Virtus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Small and Virtus High Yield, you can compare the effects of market volatilities on Lazard International and Virtus High 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 Virtus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Virtus High.
Diversification Opportunities for Lazard International and Virtus High
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lazard and Virtus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Small and Virtus High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus High Yield 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 Small are associated (or correlated) with Virtus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus High Yield has no effect on the direction of Lazard International i.e., Lazard International and Virtus High go up and down completely randomly.
Pair Corralation between Lazard International and Virtus High
Assuming the 90 days horizon Lazard International Small is expected to under-perform the Virtus High. In addition to that, Lazard International is 5.75 times more volatile than Virtus High Yield. It trades about -0.05 of its total potential returns per unit of risk. Virtus High Yield is currently generating about 0.18 per unit of volatility. If you would invest 380.00 in Virtus High Yield on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Virtus High Yield or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Small vs. Virtus High Yield
Performance |
| Timeline |
| Lazard International |
| Virtus High Yield |
Lazard International and Virtus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Virtus High
The main advantage of trading using opposite Lazard International and Virtus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Virtus High 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 Virtus High will offset losses from the drop in Virtus High's long position.| Lazard International vs. Bbh Intermediate Municipal | Lazard International vs. Limited Term Tax | Lazard International vs. Federated Pennsylvania Municipal | Lazard International vs. Franklin High Yield |
| Virtus High vs. Alger Health Sciences | Virtus High vs. Fidelity Advisor Health | Virtus High vs. Baron Health Care | Virtus High vs. Deutsche Health And |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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