Correlation Between Great-west Loomis and Lazard Strategic
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis and Lazard Strategic 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 Great-west Loomis and Lazard Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Lazard Strategic Equity, you can compare the effects of market volatilities on Great-west Loomis and Lazard Strategic 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 Great-west Loomis with a short position of Lazard Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Lazard Strategic.
Diversification Opportunities for Great-west Loomis and Lazard Strategic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great-west and Lazard is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Great-west Loomis 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 Great West Loomis Sayles are associated (or correlated) with Lazard Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Great-west Loomis i.e., Great-west Loomis and Lazard Strategic go up and down completely randomly.
Pair Corralation between Great-west Loomis and Lazard Strategic
Assuming the 90 days horizon Great West Loomis Sayles is expected to generate 0.9 times more return on investment than Lazard Strategic. However, Great West Loomis Sayles is 1.11 times less risky than Lazard Strategic. It trades about -0.18 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about -0.25 per unit of risk. If you would invest 4,048 in Great West Loomis Sayles on October 17, 2024 and sell it today you would lose (181.00) from holding Great West Loomis Sayles or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Lazard Strategic Equity
Performance |
| Timeline |
| Great West Loomis |
| Lazard Strategic Equity |
Great-west Loomis and Lazard Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Lazard Strategic
The main advantage of trading using opposite Great-west Loomis and Lazard Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis position performs unexpectedly, Lazard Strategic 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 Strategic will offset losses from the drop in Lazard Strategic's long position.| Great-west Loomis vs. Qs Large Cap | Great-west Loomis vs. Transamerica Asset Allocation | Great-west Loomis vs. Rational Strategic Allocation | Great-west Loomis vs. Aqr Large Cap |
| Lazard Strategic vs. Queens Road Small | Lazard Strategic vs. Great West Loomis Sayles | Lazard Strategic vs. Heartland Value Plus | Lazard Strategic vs. Small Cap Value |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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