Correlation Between Aqr Diversified and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Lazard Enhanced 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 Aqr Diversified and Lazard Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Aqr Diversified and Lazard Enhanced 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 Aqr Diversified with a short position of Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Lazard Enhanced.
Diversification Opportunities for Aqr Diversified and Lazard Enhanced
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and LAZARD is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo and Aqr Diversified 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 Aqr Diversified Arbitrage are associated (or correlated) with Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Aqr Diversified and Lazard Enhanced
Assuming the 90 days horizon Aqr Diversified is expected to generate 2.34 times less return on investment than Lazard Enhanced. In addition to that, Aqr Diversified is 1.4 times more volatile than Lazard Enhanced Opportunities. It trades about 0.06 of its total potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.2 per unit of volatility. If you would invest 737.00 in Lazard Enhanced Opportunities on September 3, 2024 and sell it today you would earn a total of 134.00 from holding Lazard Enhanced Opportunities or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| Lazard Enhanced Oppo |
Aqr Diversified and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and Lazard Enhanced
The main advantage of trading using opposite Aqr Diversified and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Lazard Enhanced 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 Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Aqr Diversified vs. Eip Growth And | Aqr Diversified vs. Mid Cap Growth | Aqr Diversified vs. Smallcap Growth Fund | Aqr Diversified vs. Qs Growth Fund |
| Lazard Enhanced vs. Calamos Market Neutral | Lazard Enhanced vs. Calamos Market Neutral | Lazard Enhanced vs. Absolute Convertible Arbitrage | Lazard Enhanced vs. Aqr Diversified Arbitrage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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