Correlation Between Lazard Real and Guggenheim Risk
Can any of the company-specific risk be diversified away by investing in both Lazard Real and Guggenheim Risk 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 Lazard Real and Guggenheim Risk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Real Assets and Guggenheim Risk Managed, you can compare the effects of market volatilities on Lazard Real and Guggenheim Risk 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 Lazard Real with a short position of Guggenheim Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Real and Guggenheim Risk.
Diversification Opportunities for Lazard Real and Guggenheim Risk
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lazard and Guggenheim is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Real Assets and Guggenheim Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Risk Managed and Lazard Real 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 Lazard Real Assets are associated (or correlated) with Guggenheim Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Risk Managed has no effect on the direction of Lazard Real i.e., Lazard Real and Guggenheim Risk go up and down completely randomly.
Pair Corralation between Lazard Real and Guggenheim Risk
Assuming the 90 days horizon Lazard Real Assets is expected to generate 0.72 times more return on investment than Guggenheim Risk. However, Lazard Real Assets is 1.38 times less risky than Guggenheim Risk. It trades about -0.01 of its potential returns per unit of risk. Guggenheim Risk Managed is currently generating about -0.03 per unit of risk. If you would invest 1,039 in Lazard Real Assets on September 12, 2024 and sell it today you would lose (3.00) from holding Lazard Real Assets or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Real Assets vs. Guggenheim Risk Managed
Performance |
| Timeline |
| Lazard Real Assets |
| Guggenheim Risk Managed |
Lazard Real and Guggenheim Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Real and Guggenheim Risk
The main advantage of trading using opposite Lazard Real and Guggenheim Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Real position performs unexpectedly, Guggenheim Risk 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 Guggenheim Risk will offset losses from the drop in Guggenheim Risk's long position.| Lazard Real vs. Stone Ridge Diversified | Lazard Real vs. Fulcrum Diversified Absolute | Lazard Real vs. Guggenheim Diversified Income | Lazard Real vs. Wealthbuilder Conservative Allocation |
| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Lazard Global Listed |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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