Correlation Between Mfs Blended and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Mfs Blended 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 Mfs Blended and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Blended Research and Lazard Emerging Markets, you can compare the effects of market volatilities on Mfs Blended 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 Mfs Blended with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Lazard Emerging.
Diversification Opportunities for Mfs Blended and Lazard Emerging
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Lazard is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research 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 Mfs Blended 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 Mfs Blended Research 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 Mfs Blended i.e., Mfs Blended and Lazard Emerging go up and down completely randomly.
Pair Corralation between Mfs Blended and Lazard Emerging
Assuming the 90 days horizon Mfs Blended is expected to generate 5.67 times less return on investment than Lazard Emerging. But when comparing it to its historical volatility, Mfs Blended Research is 1.02 times less risky than Lazard Emerging. It trades about 0.01 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,651 in Lazard Emerging Markets on January 24, 2024 and sell it today you would earn a total of 78.00 from holding Lazard Emerging Markets or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Blended Research vs. Lazard Emerging Markets
Performance |
| Timeline |
| Mfs Blended Research |
| Lazard Emerging Markets |
Mfs Blended and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Lazard Emerging
The main advantage of trading using opposite Mfs Blended and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended 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.| Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor |
| Lazard Emerging vs. Lazard Global Dynamic | Lazard Emerging vs. Lazard Global Dynamic | Lazard Emerging vs. Lazard International Quality | Lazard Emerging vs. Lazard Small Mid Cap |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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