Correlation Between Multisector Bond and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Multisector Bond 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 Multisector Bond and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Lazard Real Assets, you can compare the effects of market volatilities on Multisector Bond 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 Multisector Bond with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Lazard Real.
Diversification Opportunities for Multisector Bond and Lazard Real
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Multisector and Lazard is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma 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 Multisector Bond 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 Multisector Bond Sma 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 Multisector Bond i.e., Multisector Bond and Lazard Real go up and down completely randomly.
Pair Corralation between Multisector Bond and Lazard Real
Assuming the 90 days horizon Multisector Bond Sma is expected to generate 0.67 times more return on investment than Lazard Real. However, Multisector Bond Sma is 1.49 times less risky than Lazard Real. It trades about 0.14 of its potential returns per unit of risk. Lazard Real Assets is currently generating about 0.09 per unit of risk. If you would invest 1,193 in Multisector Bond Sma on September 14, 2024 and sell it today you would earn a total of 179.00 from holding Multisector Bond Sma or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multisector Bond Sma vs. Lazard Real Assets
Performance |
| Timeline |
| Multisector Bond Sma |
| Lazard Real Assets |
Multisector Bond and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Lazard Real
The main advantage of trading using opposite Multisector Bond and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond 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.| Multisector Bond vs. Lord Abbett Diversified | Multisector Bond vs. Adams Diversified Equity | Multisector Bond vs. Western Asset Diversified |
| Lazard Real vs. Dunham Real Estate | Lazard Real vs. Columbia Real Estate | Lazard Real vs. Virtus Real Estate | Lazard Real vs. Goldman Sachs Real |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |