Correlation Between Lazard Emerging and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Lazard Emerging and Lazard Real 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 Emerging and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Emerging Markets and Lazard Real Assets, you can compare the effects of market volatilities on Lazard Emerging and Lazard Real 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 Emerging with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Emerging and Lazard Real.
Diversification Opportunities for Lazard Emerging and Lazard Real
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Lazard is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Emerging Markets and Lazard Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Real Assets and Lazard Emerging 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 Emerging Markets are associated (or correlated) with Lazard Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Real Assets has no effect on the direction of Lazard Emerging i.e., Lazard Emerging and Lazard Real go up and down completely randomly.
Pair Corralation between Lazard Emerging and Lazard Real
Assuming the 90 days horizon Lazard Emerging Markets is expected to generate 1.38 times more return on investment than Lazard Real. However, Lazard Emerging is 1.38 times more volatile than Lazard Real Assets. It trades about 0.06 of its potential returns per unit of risk. Lazard Real Assets is currently generating about 0.04 per unit of risk. If you would invest 989.00 in Lazard Emerging Markets on September 4, 2024 and sell it today you would earn a total of 230.00 from holding Lazard Emerging Markets or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.68% |
| Values | Daily Returns |
Lazard Emerging Markets vs. Lazard Real Assets
Performance |
| Timeline |
| Lazard Emerging Markets |
| Lazard Real Assets |
Lazard Emerging and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Emerging and Lazard Real
The main advantage of trading using opposite Lazard Emerging and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Emerging position performs unexpectedly, Lazard Real 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 Real will offset losses from the drop in Lazard Real's long position.| Lazard Emerging vs. Touchstone Large Cap | Lazard Emerging vs. Rational Strategic Allocation | Lazard Emerging vs. Growth Strategy Fund | Lazard Emerging vs. Mirova Global Green |
| Lazard Real vs. Lazard Global Dynamic | Lazard Real vs. Lazard Global Dynamic | Lazard Real vs. Lazard International Quality | Lazard Real vs. Lazard Small Mid Cap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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