Correlation Between Lazard Emerging and New Opportunities
Can any of the company-specific risk be diversified away by investing in both Lazard Emerging and New Opportunities 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 Lazard Emerging and New Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Emerging Markets and New Opportunities Fund, you can compare the effects of market volatilities on Lazard Emerging and New Opportunities 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 Lazard Emerging with a short position of New Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Emerging and New Opportunities.
Diversification Opportunities for Lazard Emerging and New Opportunities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lazard and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Emerging Markets and New Opportunities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Opportunities and Lazard 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 Lazard Emerging Markets are associated (or correlated) with New Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Opportunities has no effect on the direction of Lazard Emerging i.e., Lazard Emerging and New Opportunities go up and down completely randomly.
Pair Corralation between Lazard Emerging and New Opportunities
If you would invest (100.00) in New Opportunities Fund on January 20, 2024 and sell it today you would earn a total of 100.00 from holding New Opportunities Fund or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lazard Emerging Markets vs. New Opportunities Fund
Performance |
| Timeline |
| Lazard Emerging Markets |
| New Opportunities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lazard Emerging and New Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Emerging and New Opportunities
The main advantage of trading using opposite Lazard Emerging and New Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Emerging position performs unexpectedly, New Opportunities 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 New Opportunities will offset losses from the drop in New Opportunities' long position.| Lazard Emerging vs. Ashmore Emerging Markets | Lazard Emerging vs. Aquagold International | Lazard Emerging vs. Thrivent High Yield | Lazard Emerging vs. Morningstar Unconstrained Allocation |
| New Opportunities vs. Calamos Global Equity | New Opportunities vs. Qs International Equity | New Opportunities vs. The Gabelli Equity | New Opportunities vs. Semiconductors Portfolio Semiconductors |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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