Correlation Between Lazard International and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Lazard International and Lazard Equity 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 Lazard Equity 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 Lazard Equity Concentrated, you can compare the effects of market volatilities on Lazard International and Lazard Equity 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 Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Equity.
Diversification Opportunities for Lazard International and Lazard Equity
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Lazard is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Small and Lazard Equity Concentrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Concen 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 Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Concen has no effect on the direction of Lazard International i.e., Lazard International and Lazard Equity go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Equity
Assuming the 90 days horizon Lazard International Small is expected to under-perform the Lazard Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard International Small is 1.23 times less risky than Lazard Equity. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Lazard Equity Concentrated is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 993.00 in Lazard Equity Concentrated on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Lazard Equity Concentrated or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lazard International Small vs. Lazard Equity Concentrated
Performance |
| Timeline |
| Lazard International |
| Lazard Equity Concen |
Lazard International and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Equity
The main advantage of trading using opposite Lazard International and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Lazard International vs. Ssga International Stock | Lazard International vs. Schwab Small Cap Equity | Lazard International vs. Schwab Large Cap Growth | Lazard International vs. Harding Loevner Emerging |
| Lazard Equity vs. Lazard Equity Centrated | Lazard Equity vs. Siit Dynamic Asset | Lazard Equity vs. Fidelity Advisor Large | Lazard Equity vs. Siit Large Cap |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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