Correlation Between Lazard International and California High
Can any of the company-specific risk be diversified away by investing in both Lazard International and California High 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 International and California High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Compounders and California High Yield Municipal, you can compare the effects of market volatilities on Lazard International and California High 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 International with a short position of California High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and California High.
Diversification Opportunities for Lazard International and California High
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lazard and California is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Compounde and California High Yield Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California High Yield and Lazard International 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 International Compounders are associated (or correlated) with California High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California High Yield has no effect on the direction of Lazard International i.e., Lazard International and California High go up and down completely randomly.
Pair Corralation between Lazard International and California High
Assuming the 90 days horizon Lazard International Compounders is expected to generate 2.84 times more return on investment than California High. However, Lazard International is 2.84 times more volatile than California High Yield Municipal. It trades about 0.24 of its potential returns per unit of risk. California High Yield Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,653 in Lazard International Compounders on September 15, 2024 and sell it today you would earn a total of 46.00 from holding Lazard International Compounders or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Compounde vs. California High Yield Municipa
Performance |
| Timeline |
| Lazard International |
| California High Yield |
Lazard International and California High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and California High
The main advantage of trading using opposite Lazard International and California High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, California High 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 California High will offset losses from the drop in California High's long position.| Lazard International vs. Gamco Global Gold | Lazard International vs. Invesco Gold Special | Lazard International vs. Sprott Gold Equity | Lazard International vs. Precious Metals And |
| California High vs. Mid Cap Value | California High vs. Equity Growth Fund | California High vs. Income Growth Fund | California High vs. Diversified Bond Fund |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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