Correlation Between Templeton Global and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Lazard Global 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 Templeton Global and Lazard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Lazard Global Dynamic, you can compare the effects of market volatilities on Templeton Global and Lazard Global 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 Templeton Global with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Lazard Global.
Diversification Opportunities for Templeton Global and Lazard Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and Lazard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Lazard Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Dynamic and Templeton Global 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 Templeton Global Bond are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Dynamic has no effect on the direction of Templeton Global i.e., Templeton Global and Lazard Global go up and down completely randomly.
Pair Corralation between Templeton Global and Lazard Global
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Lazard Global. In addition to that, Templeton Global is 1.3 times more volatile than Lazard Global Dynamic. It trades about -0.01 of its total potential returns per unit of risk. Lazard Global Dynamic is currently generating about 0.03 per unit of volatility. If you would invest 844.00 in Lazard Global Dynamic on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Lazard Global Dynamic or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Templeton Global Bond vs. Lazard Global Dynamic
Performance |
| Timeline |
| Templeton Global Bond |
| Lazard Global Dynamic |
Templeton Global and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Lazard Global
The main advantage of trading using opposite Templeton Global and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Lazard Global 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 Global will offset losses from the drop in Lazard Global's long position.| Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Templeton Foreign Fund |
| Lazard Global vs. Lazard Global Dynamic | Lazard Global vs. Lazard International Quality | Lazard Global vs. Lazard Small Mid Cap | Lazard Global vs. Lazard Equity Franchise |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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