Correlation Between Deutsche Real and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Deutsche Real 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 Deutsche Real and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Real Estate and Lazard Real Assets, you can compare the effects of market volatilities on Deutsche Real 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 Deutsche Real with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Real and Lazard Real.
Diversification Opportunities for Deutsche Real and Lazard Real
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deutsche and Lazard is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Real Estate 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 Deutsche Real 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 Deutsche Real Estate 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 Deutsche Real i.e., Deutsche Real and Lazard Real go up and down completely randomly.
Pair Corralation between Deutsche Real and Lazard Real
Assuming the 90 days horizon Deutsche Real Estate is expected to generate 1.45 times more return on investment than Lazard Real. However, Deutsche Real is 1.45 times more volatile than Lazard Real Assets. It trades about 0.01 of its potential returns per unit of risk. Lazard Real Assets is currently generating about -0.02 per unit of risk. If you would invest 2,332 in Deutsche Real Estate on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Deutsche Real Estate or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Deutsche Real Estate vs. Lazard Real Assets
Performance |
| Timeline |
| Deutsche Real Estate |
| Lazard Real Assets |
Deutsche Real and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Real and Lazard Real
The main advantage of trading using opposite Deutsche Real and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Real 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.| Deutsche Real vs. Blackrock Exchange Portfolio | Deutsche Real vs. Edward Jones Money | Deutsche Real vs. Hewitt Money Market | Deutsche Real vs. Chestnut Street Exchange |
| Lazard Real vs. Stone Ridge Diversified | Lazard Real vs. Fulcrum Diversified Absolute | Lazard Real vs. Guggenheim Diversified Income | Lazard Real vs. Wealthbuilder Conservative Allocation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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