Correlation Between Lazard International and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Lazard International and Lazard Funds 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 Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Equity and The Lazard Funds, you can compare the effects of market volatilities on Lazard International and Lazard Funds 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 Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Lazard Funds.
Diversification Opportunities for Lazard International and Lazard Funds
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lazard and Lazard is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Equity and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds 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 Equity are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Lazard International i.e., Lazard International and Lazard Funds go up and down completely randomly.
Pair Corralation between Lazard International and Lazard Funds
Assuming the 90 days horizon Lazard International Equity is expected to under-perform the Lazard Funds. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard International Equity is 1.68 times less risky than Lazard Funds. The mutual fund trades about -0.24 of its potential returns per unit of risk. The The Lazard Funds is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,134 in The Lazard Funds on August 31, 2024 and sell it today you would earn a total of 77.00 from holding The Lazard Funds or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Equity vs. The Lazard Funds
Performance |
| Timeline |
| Lazard International |
| Lazard Funds |
Lazard International and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Lazard Funds
The main advantage of trading using opposite Lazard International and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Lazard Funds 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 Funds will offset losses from the drop in Lazard Funds' long position.| Lazard International vs. Vanguard Total International | Lazard International vs. Vanguard Developed Markets | Lazard International vs. Vanguard Developed Markets | Lazard International vs. HUMANA INC |
| Lazard Funds vs. Pimco Funds | Lazard Funds vs. Blackrock Exchange Portfolio | Lazard Funds vs. Cref Money Market | Lazard Funds vs. Prudential Government Money |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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