Correlation Between Valic Company and Lazard International
Can any of the company-specific risk be diversified away by investing in both Valic Company 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 Valic Company and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Lazard International Equity, you can compare the effects of market volatilities on Valic Company 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 Valic Company with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Lazard International.
Diversification Opportunities for Valic Company and Lazard International
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valic and Lazard is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Valic Company 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 Valic Company I 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 Valic Company i.e., Valic Company and Lazard International go up and down completely randomly.
Pair Corralation between Valic Company and Lazard International
Assuming the 90 days horizon Valic Company I is expected to generate 1.68 times more return on investment than Lazard International. However, Valic Company is 1.68 times more volatile than Lazard International Equity. It trades about 0.05 of its potential returns per unit of risk. Lazard International Equity is currently generating about 0.05 per unit of risk. If you would invest 1,034 in Valic Company I on September 12, 2024 and sell it today you would earn a total of 329.00 from holding Valic Company I or generate 31.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Lazard International Equity
Performance |
| Timeline |
| Valic Company I |
| Lazard International |
Valic Company and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Lazard International
The main advantage of trading using opposite Valic Company and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company 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.| Valic Company vs. Vanguard Small Cap Value | Valic Company vs. Vanguard Small Cap Value | Valic Company vs. Us Small Cap | Valic Company vs. Us Targeted Value |
| Lazard International vs. Applied Finance Explorer | Lazard International vs. Lord Abbett Small | Lazard International vs. Valic Company I | Lazard International vs. Vanguard Small Cap Value |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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