Correlation Between Blackrock Gbl and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Blackrock Gbl and Lazard Real 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 Blackrock Gbl and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Gbl Alloc and Lazard Real Assets, you can compare the effects of market volatilities on Blackrock Gbl and Lazard Real 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 Blackrock Gbl with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Gbl and Lazard Real.
Diversification Opportunities for Blackrock Gbl and Lazard Real
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Lazard is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Gbl Alloc and Lazard Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Real Assets and Blackrock Gbl 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 Blackrock Gbl Alloc are associated (or correlated) with Lazard Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Real Assets has no effect on the direction of Blackrock Gbl i.e., Blackrock Gbl and Lazard Real go up and down completely randomly.
Pair Corralation between Blackrock Gbl and Lazard Real
Assuming the 90 days horizon Blackrock Gbl Alloc is expected to generate 0.89 times more return on investment than Lazard Real. However, Blackrock Gbl Alloc is 1.12 times less risky than Lazard Real. It trades about 0.06 of its potential returns per unit of risk. Lazard Real Assets is currently generating about 0.04 per unit of risk. If you would invest 1,678 in Blackrock Gbl Alloc on September 4, 2024 and sell it today you would earn a total of 306.00 from holding Blackrock Gbl Alloc or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Blackrock Gbl Alloc vs. Lazard Real Assets
Performance |
| Timeline |
| Blackrock Gbl Alloc |
| Lazard Real Assets |
Blackrock Gbl and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Gbl and Lazard Real
The main advantage of trading using opposite Blackrock Gbl and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Gbl position performs unexpectedly, Lazard Real 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 Real will offset losses from the drop in Lazard Real's long position.| Blackrock Gbl vs. Multimanager Lifestyle Aggressive | Blackrock Gbl vs. Pioneer High Yield | Blackrock Gbl vs. Western Asset High | Blackrock Gbl vs. Pace High Yield |
| Lazard Real vs. Lazard Global Dynamic | Lazard Real vs. Lazard Global Dynamic | Lazard Real vs. Lazard International Quality | Lazard Real vs. Lazard Small Mid 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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