Correlation Between Lazard Us and The Hartford
Can any of the company-specific risk be diversified away by investing in both Lazard Us and The Hartford 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 Us and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Sustainable Equity and The Hartford Emerging, you can compare the effects of market volatilities on Lazard Us and The Hartford 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 Us with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Us and The Hartford.
Diversification Opportunities for Lazard Us and The Hartford
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lazard and THE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Sustainable Equity and The Hartford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Emerging and Lazard Us 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 Sustainable Equity are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Emerging has no effect on the direction of Lazard Us i.e., Lazard Us and The Hartford go up and down completely randomly.
Pair Corralation between Lazard Us and The Hartford
Assuming the 90 days horizon Lazard Sustainable Equity is expected to generate 1.86 times more return on investment than The Hartford. However, Lazard Us is 1.86 times more volatile than The Hartford Emerging. It trades about 0.1 of its potential returns per unit of risk. The Hartford Emerging is currently generating about -0.01 per unit of risk. If you would invest 1,452 in Lazard Sustainable Equity on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Lazard Sustainable Equity or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Sustainable Equity vs. The Hartford Emerging
Performance |
| Timeline |
| Lazard Sustainable Equity |
| Hartford Emerging |
Lazard Us and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Us and The Hartford
The main advantage of trading using opposite Lazard Us and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Lazard Us vs. The Hartford Emerging | Lazard Us vs. Mondrian Emerging Markets | Lazard Us vs. The Emerging Markets | Lazard Us vs. Western Assets Emerging |
| The Hartford vs. The Hartford Small | The Hartford vs. Ab Small Cap | The Hartford vs. Us Small Cap | The Hartford vs. Small Pany Growth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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