Correlation Between Amg Managers and Lazard International
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Lazard International 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 Amg Managers and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Centersquare and Lazard International Pounders, you can compare the effects of market volatilities on Amg Managers and Lazard International 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 Amg Managers with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Lazard International.
Diversification Opportunities for Amg Managers and Lazard International
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and Lazard is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Lazard International Pounders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Amg Managers 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 Amg Managers Centersquare are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Amg Managers i.e., Amg Managers and Lazard International go up and down completely randomly.
Pair Corralation between Amg Managers and Lazard International
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 1.2 times more return on investment than Lazard International. However, Amg Managers is 1.2 times more volatile than Lazard International Pounders. It trades about 0.05 of its potential returns per unit of risk. Lazard International Pounders is currently generating about 0.05 per unit of risk. If you would invest 1,062 in Amg Managers Centersquare on September 14, 2024 and sell it today you would earn a total of 131.00 from holding Amg Managers Centersquare or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Lazard International Pounders
Performance |
| Timeline |
| Amg Managers Centersquare |
| Lazard International |
Amg Managers and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Lazard International
The main advantage of trading using opposite Amg Managers and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.| Amg Managers vs. Transamerica Financial Life | Amg Managers vs. Fidelity Advisor Financial | Amg Managers vs. Icon Financial Fund | Amg Managers vs. Blackrock Financial Institutions |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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