Correlation Between Vanguard Emerging and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Vanguard Emerging and Lazard Emerging 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 Emerging and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Emerging Markets and Lazard Emerging Markets, you can compare the effects of market volatilities on Vanguard Emerging and Lazard Emerging 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 Emerging with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Emerging and Lazard Emerging.
Diversification Opportunities for Vanguard Emerging and Lazard Emerging
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VANGUARD and Lazard is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Emerging Markets and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets and Vanguard Emerging 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 Emerging Markets are associated (or correlated) with Lazard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of Vanguard Emerging i.e., Vanguard Emerging and Lazard Emerging go up and down completely randomly.
Pair Corralation between Vanguard Emerging and Lazard Emerging
Assuming the 90 days horizon Vanguard Emerging Markets is expected to generate 0.98 times more return on investment than Lazard Emerging. However, Vanguard Emerging Markets is 1.02 times less risky than Lazard Emerging. It trades about -0.22 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about -0.24 per unit of risk. If you would invest 2,988 in Vanguard Emerging Markets on August 29, 2024 and sell it today you would lose (118.00) from holding Vanguard Emerging Markets or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Emerging Markets vs. Lazard Emerging Markets
Performance |
| Timeline |
| Vanguard Emerging Markets |
| Lazard Emerging Markets |
Vanguard Emerging and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Emerging and Lazard Emerging
The main advantage of trading using opposite Vanguard Emerging and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Emerging position performs unexpectedly, Lazard Emerging 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 Emerging will offset losses from the drop in Lazard Emerging's long position.| Vanguard Emerging vs. Vanguard Emerging Markets | Vanguard Emerging vs. Vanguard Emerging Markets | Vanguard Emerging vs. Vanguard Emerging Markets | Vanguard Emerging vs. American Funds New |
| Lazard Emerging vs. Vanguard Emerging Markets | Lazard Emerging vs. Vanguard Emerging Markets | Lazard Emerging vs. HUMANA INC | Lazard Emerging vs. Aquagold International |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |