Correlation Between Neuberger Berman and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Lazard Us 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 Neuberger Berman and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Large and Lazard Small Mid Cap, you can compare the effects of market volatilities on Neuberger Berman and Lazard Us 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 Neuberger Berman with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Lazard Us.
Diversification Opportunities for Neuberger Berman and Lazard Us
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Neuberger and Lazard is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Large and Lazard Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Small Mid and Neuberger Berman 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 Neuberger Berman Large are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Small Mid has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Lazard Us go up and down completely randomly.
Pair Corralation between Neuberger Berman and Lazard Us
Assuming the 90 days horizon Neuberger Berman is expected to generate 1.9 times less return on investment than Lazard Us. But when comparing it to its historical volatility, Neuberger Berman Large is 2.36 times less risky than Lazard Us. It trades about 0.35 of its potential returns per unit of risk. Lazard Small Mid Cap is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,309 in Lazard Small Mid Cap on September 2, 2024 and sell it today you would earn a total of 113.00 from holding Lazard Small Mid Cap or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Large vs. Lazard Small Mid Cap
Performance |
| Timeline |
| Neuberger Berman Large |
| Lazard Small Mid |
Neuberger Berman and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Lazard Us
The main advantage of trading using opposite Neuberger Berman and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.| Neuberger Berman vs. Neuberger Berman Guardian | Neuberger Berman vs. Neuberger Berman Focus | Neuberger Berman vs. Neuberger Berman Genesis | Neuberger Berman vs. Neuberger Berman Socially |
| Lazard Us vs. Aig Government Money | Lazard Us vs. Lord Abbett Govt | Lazard Us vs. Bbh Trust | Lazard Us vs. T Rowe Price |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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