Correlation Between Arrow Managed and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and The Lazard Funds, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Lazard Funds.
Diversification Opportunities for Arrow Managed and Lazard Funds
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Lazard is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Arrow Managed 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 Arrow Managed Futures 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 Arrow Managed i.e., Arrow Managed and Lazard Funds go up and down completely randomly.
Pair Corralation between Arrow Managed and Lazard Funds
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the Lazard Funds. In addition to that, Arrow Managed is 1.14 times more volatile than The Lazard Funds. It trades about -0.03 of its total potential returns per unit of risk. The Lazard Funds is currently generating about 0.1 per unit of volatility. If you would invest 1,058 in The Lazard Funds on September 3, 2024 and sell it today you would earn a total of 155.00 from holding The Lazard Funds or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. The Lazard Funds
Performance |
| Timeline |
| Arrow Managed Futures |
| Lazard Funds |
Arrow Managed and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Lazard Funds
The main advantage of trading using opposite Arrow Managed and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.| Arrow Managed vs. Transamerica Funds | Arrow Managed vs. T Rowe Price | Arrow Managed vs. Cs 607 Tax | Arrow Managed vs. Intermediate Term Tax Free Bond |
| Lazard Funds vs. Prudential Core Conservative | Lazard Funds vs. Massmutual Premier Diversified | Lazard Funds vs. Fidelity Advisor Diversified | Lazard Funds vs. Massmutual Select Diversified |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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