Correlation Between Nasdaq 100 and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 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 Nasdaq 100 and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Lazard Real Assets, you can compare the effects of market volatilities on Nasdaq 100 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 Nasdaq 100 with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Lazard Real.
Diversification Opportunities for Nasdaq 100 and Lazard Real
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and Lazard is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy 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 Nasdaq 100 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 Nasdaq 100 2x Strategy 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 Nasdaq 100 i.e., Nasdaq 100 and Lazard Real go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Lazard Real
Assuming the 90 days horizon Nasdaq 100 is expected to generate 1.15 times less return on investment than Lazard Real. In addition to that, Nasdaq 100 is 5.83 times more volatile than Lazard Real Assets. It trades about 0.02 of its total potential returns per unit of risk. Lazard Real Assets is currently generating about 0.11 per unit of volatility. If you would invest 1,021 in Lazard Real Assets on September 15, 2024 and sell it today you would earn a total of 11.00 from holding Lazard Real Assets or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Lazard Real Assets
Performance |
| Timeline |
| Nasdaq 100 2x |
| Lazard Real Assets |
Nasdaq 100 and Lazard Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Lazard Real
The main advantage of trading using opposite Nasdaq 100 and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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.| Nasdaq 100 vs. Calamos Global Equity | Nasdaq 100 vs. Dreyfusnewton International Equity | Nasdaq 100 vs. Gmo Global Equity | Nasdaq 100 vs. Ab Fixed Income Shares |
| Lazard Real vs. Dodge Cox Stock | Lazard Real vs. Upright Assets Allocation | Lazard Real vs. T Rowe Price | Lazard Real vs. Jhancock Disciplined Value |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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