Correlation Between Hartford Schroders and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both Hartford Schroders 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 Hartford Schroders and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Schroders Emerging and Lazard Emerging Markets, you can compare the effects of market volatilities on Hartford Schroders 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 Hartford Schroders with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Schroders and Lazard Emerging.
Diversification Opportunities for Hartford Schroders and Lazard Emerging
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and Lazard is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Schroders Emerging 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 Hartford Schroders 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 Hartford Schroders Emerging 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 Hartford Schroders i.e., Hartford Schroders and Lazard Emerging go up and down completely randomly.
Pair Corralation between Hartford Schroders and Lazard Emerging
Assuming the 90 days horizon Hartford Schroders Emerging is expected to generate 0.97 times more return on investment than Lazard Emerging. However, Hartford Schroders Emerging is 1.03 times less risky than Lazard Emerging. It trades about -0.02 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about -0.05 per unit of risk. If you would invest 1,602 in Hartford Schroders Emerging on January 25, 2024 and sell it today you would lose (7.00) from holding Hartford Schroders Emerging or give up 0.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hartford Schroders Emerging vs. Lazard Emerging Markets
Performance |
Timeline |
Hartford Schroders |
Lazard Emerging Markets |
Hartford Schroders and Lazard Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Schroders and Lazard Emerging
The main advantage of trading using opposite Hartford Schroders and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Schroders 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.Hartford Schroders vs. Amana Income Fund | Hartford Schroders vs. Amana Growth Fund | Hartford Schroders vs. Amana Participation Fund | Hartford Schroders vs. HUMANA INC |
Lazard Emerging vs. Heritage Fund Investor | Lazard Emerging vs. Real Estate Fund | Lazard Emerging vs. Global Growth Fund | Lazard Emerging vs. Utilities Fund Investor |
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 Stocks Directory module to find actively traded stocks across global markets.
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