Correlation Between Lazard Real and Lazard Developing
Can any of the company-specific risk be diversified away by investing in both Lazard Real and Lazard Developing 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 Lazard Developing 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 Lazard Developing Markets, you can compare the effects of market volatilities on Lazard Real and Lazard Developing 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 Lazard Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Real and Lazard Developing.
Diversification Opportunities for Lazard Real and Lazard Developing
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Lazard is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Real Assets and Lazard Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Developing Markets 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 Lazard Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Developing Markets has no effect on the direction of Lazard Real i.e., Lazard Real and Lazard Developing go up and down completely randomly.
Pair Corralation between Lazard Real and Lazard Developing
Assuming the 90 days horizon Lazard Real Assets is expected to generate 0.64 times more return on investment than Lazard Developing. However, Lazard Real Assets is 1.56 times less risky than Lazard Developing. It trades about 0.05 of its potential returns per unit of risk. Lazard Developing Markets is currently generating about -0.08 per unit of risk. If you would invest 1,038 in Lazard Real Assets on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Lazard Real Assets or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lazard Real Assets vs. Lazard Developing Markets
Performance |
| Timeline |
| Lazard Real Assets |
| Lazard Developing Markets |
Lazard Real and Lazard Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Real and Lazard Developing
The main advantage of trading using opposite Lazard Real and Lazard Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Real position performs unexpectedly, Lazard Developing 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 Developing will offset losses from the drop in Lazard Developing's long position.| Lazard Real vs. Capital Income Builder | Lazard Real vs. Capital Income Builder | Lazard Real vs. Capital Income Builder | Lazard Real vs. Capital Income Builder |
| Lazard Developing vs. Equity Series Class | Lazard Developing vs. Dreyfus International Bond | Lazard Developing vs. Blackrock Hi Yld | Lazard Developing vs. Heartland Value Plus |
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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