Correlation Between Siit Emerging and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Lazard Equity 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 Siit Emerging and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Lazard Equity Franchise, you can compare the effects of market volatilities on Siit Emerging and Lazard Equity 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 Siit Emerging with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Lazard Equity.
Diversification Opportunities for Siit Emerging and Lazard Equity
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siit and Lazard is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Siit 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 Siit Emerging Markets are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Siit Emerging i.e., Siit Emerging and Lazard Equity go up and down completely randomly.
Pair Corralation between Siit Emerging and Lazard Equity
Assuming the 90 days horizon Siit Emerging is expected to generate 1.59 times less return on investment than Lazard Equity. But when comparing it to its historical volatility, Siit Emerging Markets is 2.15 times less risky than Lazard Equity. It trades about 0.34 of its potential returns per unit of risk. Lazard Equity Franchise is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 830.00 in Lazard Equity Franchise on October 30, 2024 and sell it today you would earn a total of 32.00 from holding Lazard Equity Franchise or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Siit Emerging Markets vs. Lazard Equity Franchise
Performance |
| Timeline |
| Siit Emerging Markets |
| Lazard Equity Franchise |
Siit Emerging and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Lazard Equity
The main advantage of trading using opposite Siit Emerging and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Siit Emerging vs. Victory Rs Partners | Siit Emerging vs. Ultrasmall Cap Profund Ultrasmall Cap | Siit Emerging vs. Applied Finance Explorer | Siit Emerging vs. Amg River Road |
| Lazard Equity vs. Lazard Global Listed | Lazard Equity vs. Lazard Global Listed | Lazard Equity vs. Lazard International Pounders |
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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