Correlation Between Lazard Us and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Lazard Us and Lazard Funds 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 Us and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Strategic Equity and The Lazard Funds, you can compare the effects of market volatilities on Lazard Us and Lazard Funds 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 Us with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and Lazard Funds.
Diversification Opportunities for Lazard Us and Lazard Funds
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and Lazard is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Strategic Equity and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Lazard Us 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 Strategic Equity are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Lazard Us i.e., Lazard Us and Lazard Funds go up and down completely randomly.
Pair Corralation between Lazard Us and Lazard Funds
Assuming the 90 days horizon Lazard Us is expected to generate 2.17 times less return on investment than Lazard Funds. But when comparing it to its historical volatility, Lazard Strategic Equity is 1.43 times less risky than Lazard Funds. It trades about 0.09 of its potential returns per unit of risk. The Lazard Funds is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,111 in The Lazard Funds on August 28, 2024 and sell it today you would earn a total of 108.00 from holding The Lazard Funds or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Strategic Equity vs. The Lazard Funds
Performance |
| Timeline |
| Lazard Strategic Equity |
| Lazard Funds |
Lazard Us and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Us and Lazard Funds
The main advantage of trading using opposite Lazard Us and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, Lazard Funds 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 Funds will offset losses from the drop in Lazard Funds' long position.| Lazard Us vs. Blackrock Inflation Protected | Lazard Us vs. Ab Bond Inflation | Lazard Us vs. Ab Municipal Bond | Lazard Us vs. Deutsche Global Inflation |
| Lazard Funds vs. Old Westbury Short Term | Lazard Funds vs. Siit Ultra Short | Lazard Funds vs. Locorr Longshort Modities | Lazard Funds vs. Jhancock Short Duration |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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