Correlation Between Lazard Strategic and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Lazard Strategic and Growth Strategy 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 Strategic and Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Lazard Strategic and Growth Strategy 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 Strategic with a short position of Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Strategic and Growth Strategy.
Diversification Opportunities for Lazard Strategic and Growth Strategy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lazard and Growth is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Strategic Equity and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy and Lazard Strategic 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Lazard Strategic i.e., Lazard Strategic and Growth Strategy go up and down completely randomly.
Pair Corralation between Lazard Strategic and Growth Strategy
Assuming the 90 days horizon Lazard Strategic Equity is expected to under-perform the Growth Strategy. In addition to that, Lazard Strategic is 1.33 times more volatile than Growth Strategy Fund. It trades about 0.0 of its total potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.01 per unit of volatility. If you would invest 1,203 in Growth Strategy Fund on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Growth Strategy Fund or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Strategic Equity vs. Growth Strategy Fund
Performance |
| Timeline |
| Lazard Strategic Equity |
| Growth Strategy |
Lazard Strategic and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Strategic and Growth Strategy
The main advantage of trading using opposite Lazard Strategic and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Strategic position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Lazard Strategic vs. Eip Growth And | Lazard Strategic vs. Tfa Alphagen Growth | Lazard Strategic vs. Rational Defensive Growth | Lazard Strategic vs. Artisan Small Cap |
| Growth Strategy vs. Smallcap Growth Fund | Growth Strategy vs. T Rowe Price | Growth Strategy vs. L Abbett Growth | Growth Strategy vs. Rational Defensive Growth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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