Correlation Between Old Westbury and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Short Term and The Lazard Funds, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Lazard Funds.
Diversification Opportunities for Old Westbury and Lazard Funds
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Old and Lazard is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Old Westbury 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 Old Westbury Short Term 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 Old Westbury i.e., Old Westbury and Lazard Funds go up and down completely randomly.
Pair Corralation between Old Westbury and Lazard Funds
Assuming the 90 days horizon Old Westbury Short Term is expected to generate 0.05 times more return on investment than Lazard Funds. However, Old Westbury Short Term is 21.04 times less risky than Lazard Funds. It trades about 0.07 of its potential returns per unit of risk. The Lazard Funds is currently generating about -0.12 per unit of risk. If you would invest 1,012 in Old Westbury Short Term on January 11, 2025 and sell it today you would earn a total of 2.00 from holding Old Westbury Short Term or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Old Westbury Short Term vs. The Lazard Funds
Performance |
| Timeline |
| Old Westbury Short |
| Lazard Funds |
Old Westbury and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Lazard Funds
The main advantage of trading using opposite Old Westbury and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Delaware Minnesota High Yield | Old Westbury vs. Nuveen Short Duration High | Old Westbury vs. Franklin High Yield | Old Westbury vs. T Rowe Price |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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