Correlation Between Cref Money and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Cref Money 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 Cref Money and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and The Lazard Funds, you can compare the effects of market volatilities on Cref Money 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 Cref Money with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Lazard Funds.
Diversification Opportunities for Cref Money and Lazard Funds
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cref and Lazard is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Cref Money 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 Cref Money Market 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 Cref Money i.e., Cref Money and Lazard Funds go up and down completely randomly.
Pair Corralation between Cref Money and Lazard Funds
Assuming the 90 days trading horizon Cref Money is expected to generate 3.9 times less return on investment than Lazard Funds. But when comparing it to its historical volatility, Cref Money Market is 53.31 times less risky than Lazard Funds. It trades about 0.96 of its potential returns per unit of risk. The Lazard Funds is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 927.00 in The Lazard Funds on August 31, 2024 and sell it today you would earn a total of 286.00 from holding The Lazard Funds or generate 30.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Cref Money Market vs. The Lazard Funds
Performance |
| Timeline |
| Cref Money Market |
| Lazard Funds |
Cref Money and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Lazard Funds
The main advantage of trading using opposite Cref Money and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money 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.| Cref Money vs. Mesirow Financial Small | Cref Money vs. Goldman Sachs Financial | Cref Money vs. Angel Oak Financial | Cref Money vs. Transamerica Financial Life |
| Lazard Funds vs. Pimco Funds | Lazard Funds vs. Blackrock Exchange Portfolio | Lazard Funds vs. Cref Money Market | Lazard Funds vs. Prudential Government Money |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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