Correlation Between Lazard International and Columbia Emerging
Can any of the company-specific risk be diversified away by investing in both Lazard International and Columbia 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 International and Columbia Emerging 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 Columbia Emerging Markets, you can compare the effects of market volatilities on Lazard International and Columbia 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 International with a short position of Columbia Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Columbia Emerging.
Diversification Opportunities for Lazard International and Columbia Emerging
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lazard and Columbia is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Small and Columbia Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Emerging Markets 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 Columbia Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Emerging Markets has no effect on the direction of Lazard International i.e., Lazard International and Columbia Emerging go up and down completely randomly.
Pair Corralation between Lazard International and Columbia Emerging
Assuming the 90 days horizon Lazard International Small is expected to under-perform the Columbia Emerging. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard International Small is 1.24 times less risky than Columbia Emerging. The mutual fund trades about -0.37 of its potential returns per unit of risk. The Columbia Emerging Markets is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,402 in Columbia Emerging Markets on August 28, 2024 and sell it today you would lose (72.00) from holding Columbia Emerging Markets or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Small vs. Columbia Emerging Markets
Performance |
| Timeline |
| Lazard International |
| Columbia Emerging Markets |
Lazard International and Columbia Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Columbia Emerging
The main advantage of trading using opposite Lazard International and Columbia Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Columbia 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 Columbia Emerging will offset losses from the drop in Columbia Emerging'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 |
| Columbia Emerging vs. Ab Bond Inflation | Columbia Emerging vs. Ab Municipal Bond | Columbia Emerging vs. Aqr Managed Futures | Columbia Emerging vs. Vy Blackrock Inflation |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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