Correlation Between Federated Ohio and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Federated Ohio 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 Federated Ohio and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Ohio Municipal and Lazard Small Mid Cap, you can compare the effects of market volatilities on Federated Ohio 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 Federated Ohio with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Ohio and Lazard Us.
Diversification Opportunities for Federated Ohio and Lazard Us
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between FEDERATED and Lazard is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Federated Ohio Municipal 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 Federated Ohio 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 Federated Ohio Municipal 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 Federated Ohio i.e., Federated Ohio and Lazard Us go up and down completely randomly.
Pair Corralation between Federated Ohio and Lazard Us
Assuming the 90 days horizon Federated Ohio is expected to generate 7.64 times less return on investment than Lazard Us. But when comparing it to its historical volatility, Federated Ohio Municipal is 4.66 times less risky than Lazard Us. It trades about 0.17 of its potential returns per unit of risk. Lazard Small Mid Cap is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,309 in Lazard Small Mid Cap on September 1, 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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Ohio Municipal vs. Lazard Small Mid Cap
Performance |
| Timeline |
| Federated Ohio Municipal |
| Lazard Small Mid |
Federated Ohio and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Ohio and Lazard Us
The main advantage of trading using opposite Federated Ohio and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Ohio 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.| Federated Ohio vs. Federated Emerging Market | Federated Ohio vs. Federated Mdt All | Federated Ohio vs. Federated Mdt Balanced | Federated Ohio vs. Federated Global Allocation |
| Lazard Us vs. Transamerica Intermediate Muni | Lazard Us vs. Federated Ohio Municipal | Lazard Us vs. Ab Global Bond | Lazard Us vs. California Bond Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |