Correlation Between Lazard International and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Lazard International and Pgim Jennison 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 Pgim Jennison 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 Pgim Jennison Technology, you can compare the effects of market volatilities on Lazard International and Pgim Jennison 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 Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Pgim Jennison.
Diversification Opportunities for Lazard International and Pgim Jennison
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and Pgim is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Equity and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology 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 Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Technology has no effect on the direction of Lazard International i.e., Lazard International and Pgim Jennison go up and down completely randomly.
Pair Corralation between Lazard International and Pgim Jennison
Assuming the 90 days horizon Lazard International Equity is expected to under-perform the Pgim Jennison. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lazard International Equity is 1.76 times less risky than Pgim Jennison. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Pgim Jennison Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,291 in Pgim Jennison Technology on September 4, 2024 and sell it today you would earn a total of 393.00 from holding Pgim Jennison Technology or generate 17.15% 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. Pgim Jennison Technology
Performance |
| Timeline |
| Lazard International |
| Pgim Jennison Technology |
Lazard International and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Pgim Jennison
The main advantage of trading using opposite Lazard International and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.| Lazard International vs. Pgim Jennison Technology | Lazard International vs. Mfs Technology Fund | Lazard International vs. Janus Global Technology | Lazard International vs. Ivy Science And |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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