Correlation Between Balanced Fund and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Lazard Us 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 Balanced Fund and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Investor and Lazard Strategic Equity, you can compare the effects of market volatilities on Balanced Fund and Lazard Us 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 Balanced Fund with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Lazard Us.
Diversification Opportunities for Balanced Fund and Lazard Us
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Balanced and Lazard is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Balanced Fund 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 Balanced Fund Investor are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Balanced Fund i.e., Balanced Fund and Lazard Us go up and down completely randomly.
Pair Corralation between Balanced Fund and Lazard Us
Assuming the 90 days horizon Balanced Fund is expected to generate 1.3 times less return on investment than Lazard Us. But when comparing it to its historical volatility, Balanced Fund Investor is 1.63 times less risky than Lazard Us. It trades about 0.14 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,722 in Lazard Strategic Equity on September 4, 2024 and sell it today you would earn a total of 92.00 from holding Lazard Strategic Equity or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Balanced Fund Investor vs. Lazard Strategic Equity
Performance |
| Timeline |
| Balanced Fund Investor |
| Lazard Strategic Equity |
Balanced Fund and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Lazard Us
The main advantage of trading using opposite Balanced Fund and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
| Lazard Us vs. Growth Strategy Fund | Lazard Us vs. Small Cap Stock | Lazard Us vs. Balanced Fund Investor | Lazard Us vs. T Rowe Price |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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