Correlation Between Lazard Emerging and Lazard International
Can any of the company-specific risk be diversified away by investing in both Lazard Emerging and Lazard International 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 Emerging and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Emerging Markets and Lazard International Equity, you can compare the effects of market volatilities on Lazard Emerging and Lazard International 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 Emerging with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Emerging and Lazard International.
Diversification Opportunities for Lazard Emerging and Lazard International
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Lazard is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Emerging Markets and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Lazard Emerging 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 Emerging Markets are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Lazard Emerging i.e., Lazard Emerging and Lazard International go up and down completely randomly.
Pair Corralation between Lazard Emerging and Lazard International
Assuming the 90 days horizon Lazard Emerging Markets is expected to generate 1.11 times more return on investment than Lazard International. However, Lazard Emerging is 1.11 times more volatile than Lazard International Equity. It trades about 0.06 of its potential returns per unit of risk. Lazard International Equity is currently generating about 0.03 per unit of risk. If you would invest 1,625 in Lazard Emerging Markets on August 31, 2024 and sell it today you would earn a total of 314.00 from holding Lazard Emerging Markets or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Emerging Markets vs. Lazard International Equity
Performance |
| Timeline |
| Lazard Emerging Markets |
| Lazard International |
Lazard Emerging and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Emerging and Lazard International
The main advantage of trading using opposite Lazard Emerging and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Emerging position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.| Lazard Emerging vs. Vanguard Emerging Markets | Lazard Emerging vs. Vanguard Emerging Markets | Lazard Emerging vs. New World Fund | Lazard Emerging vs. HUMANA INC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |