Correlation Between Vanguard Developed and Lazard International
Can any of the company-specific risk be diversified away by investing in both Vanguard Developed 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 Vanguard Developed and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Developed Markets and Lazard International Equity, you can compare the effects of market volatilities on Vanguard Developed 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 Vanguard Developed with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Developed and Lazard International.
Diversification Opportunities for Vanguard Developed and Lazard International
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Lazard is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Developed Markets and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Vanguard Developed 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 Vanguard Developed Markets 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 Vanguard Developed i.e., Vanguard Developed and Lazard International go up and down completely randomly.
Pair Corralation between Vanguard Developed and Lazard International
Assuming the 90 days horizon Vanguard Developed Markets is expected to generate 1.02 times more return on investment than Lazard International. However, Vanguard Developed is 1.02 times more volatile than Lazard International Equity. It trades about 0.01 of its potential returns per unit of risk. Lazard International Equity is currently generating about -0.02 per unit of risk. If you would invest 1,248 in Vanguard Developed Markets on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Vanguard Developed Markets or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Developed Markets vs. Lazard International Equity
Performance |
| Timeline |
| Vanguard Developed |
| Lazard International |
Vanguard Developed and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Developed and Lazard International
The main advantage of trading using opposite Vanguard Developed and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Developed 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.| Vanguard Developed vs. Scharf Global Opportunity | Vanguard Developed vs. Us Global Investors | Vanguard Developed vs. Ms Global Fixed | Vanguard Developed vs. Federated Global Allocation |
| Lazard International vs. Pace International Emerging | Lazard International vs. Origin Emerging Markets | Lazard International vs. Artisan Emerging Markets | Lazard International vs. Eagle Mlp Strategy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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