Correlation Between Hartford Schroders and Lazard International
Can any of the company-specific risk be diversified away by investing in both Hartford Schroders and Lazard International 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 Hartford Schroders and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Schroders Emerging and Lazard International Equity, you can compare the effects of market volatilities on Hartford Schroders and Lazard International 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 Hartford Schroders with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Schroders and Lazard International.
Diversification Opportunities for Hartford Schroders and Lazard International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Lazard is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Schroders Emerging and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Hartford Schroders 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 Hartford Schroders Emerging are associated (or correlated) with Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Hartford Schroders i.e., Hartford Schroders and Lazard International go up and down completely randomly.
Pair Corralation between Hartford Schroders and Lazard International
Assuming the 90 days horizon Hartford Schroders Emerging is expected to under-perform the Lazard International. In addition to that, Hartford Schroders is 1.12 times more volatile than Lazard International Equity. It trades about -0.08 of its total potential returns per unit of risk. Lazard International Equity is currently generating about -0.03 per unit of volatility. If you would invest 1,120 in Lazard International Equity on September 12, 2024 and sell it today you would lose (5.00) from holding Lazard International Equity or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Schroders Emerging vs. Lazard International Equity
Performance |
| Timeline |
| Hartford Schroders |
| Lazard International |
Hartford Schroders and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Schroders and Lazard International
The main advantage of trading using opposite Hartford Schroders and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Schroders position performs unexpectedly, Lazard International 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 International will offset losses from the drop in Lazard International's long position.| Hartford Schroders vs. Artisan Developing World | Hartford Schroders vs. William Blair Emerging | Hartford Schroders vs. Wasatch Emerging Markets | Hartford Schroders vs. Aquagold International |
| Lazard International vs. Applied Finance Explorer | Lazard International vs. Lord Abbett Small | Lazard International vs. Valic Company I | Lazard International vs. Vanguard Small Cap 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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