Correlation Between Kinetics Paradigm and Lazard International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm 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 Kinetics Paradigm and Lazard International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Paradigm Fund and Lazard International Equity, you can compare the effects of market volatilities on Kinetics Paradigm 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 Kinetics Paradigm with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Lazard International.

Diversification Opportunities for Kinetics Paradigm and Lazard International

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kinetics and Lazard is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Kinetics Paradigm 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 Kinetics Paradigm Fund 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 Kinetics Paradigm i.e., Kinetics Paradigm and Lazard International go up and down completely randomly.

Pair Corralation between Kinetics Paradigm and Lazard International

Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.62 times more return on investment than Lazard International. However, Kinetics Paradigm is 3.62 times more volatile than Lazard International Equity. It trades about 0.3 of its potential returns per unit of risk. Lazard International Equity is currently generating about -0.02 per unit of risk. If you would invest  9,612  in Kinetics Paradigm Fund on September 6, 2024 and sell it today you would earn a total of  6,039  from holding Kinetics Paradigm Fund or generate 62.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Kinetics Paradigm Fund  vs.  Lazard International Equity

 Performance 
       Timeline  
Kinetics Paradigm 

Risk-Adjusted Performance

23 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Paradigm Fund are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kinetics Paradigm showed solid returns over the last few months and may actually be approaching a breakup point.
Lazard International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Lazard International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Lazard International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinetics Paradigm and Lazard International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kinetics Paradigm and Lazard International

The main advantage of trading using opposite Kinetics Paradigm and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm 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.
The idea behind Kinetics Paradigm Fund and Lazard International Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments