Correlation Between Lazard Emerging and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Lazard Emerging and Touchstone Large 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 Touchstone Large 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 Touchstone Large Cap, you can compare the effects of market volatilities on Lazard Emerging and Touchstone Large 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 Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Emerging and Touchstone Large.
Diversification Opportunities for Lazard Emerging and Touchstone Large
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Touchstone is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Emerging Markets and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Large Cap 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 Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of Lazard Emerging i.e., Lazard Emerging and Touchstone Large go up and down completely randomly.
Pair Corralation between Lazard Emerging and Touchstone Large
Assuming the 90 days horizon Lazard Emerging Markets is expected to generate 1.11 times more return on investment than Touchstone Large. However, Lazard Emerging is 1.11 times more volatile than Touchstone Large Cap. It trades about -0.06 of its potential returns per unit of risk. Touchstone Large Cap is currently generating about -0.22 per unit of risk. If you would invest 1,253 in Lazard Emerging Markets on September 12, 2024 and sell it today you would lose (14.00) from holding Lazard Emerging Markets or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lazard Emerging Markets vs. Touchstone Large Cap
Performance |
| Timeline |
| Lazard Emerging Markets |
| Touchstone Large Cap |
Lazard Emerging and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Emerging and Touchstone Large
The main advantage of trading using opposite Lazard Emerging and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Emerging position performs unexpectedly, Touchstone Large 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 Touchstone Large will offset losses from the drop in Touchstone Large's long position.| Lazard Emerging vs. Ab Select Equity | Lazard Emerging vs. Ab Fixed Income Shares | Lazard Emerging vs. Us Vector Equity | Lazard Emerging vs. Sarofim Equity |
| Touchstone Large vs. Jhancock Disciplined Value | Touchstone Large vs. Fidelity Series 1000 | Touchstone Large vs. Dana Large Cap | Touchstone Large vs. Americafirst Large 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |