Correlation Between Kinetics Paradigm and Lazard International
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 3.67 times more return on investment than Lazard International. However, Kinetics Paradigm is 3.67 times more volatile than Lazard International Equity. It trades about 0.28 of its potential returns per unit of risk. Lazard International Equity is currently generating about -0.01 per unit of risk. If you would invest 9,609 in Kinetics Paradigm Fund on September 10, 2024 and sell it today you would earn a total of 5,617 from holding Kinetics Paradigm Fund or generate 58.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kinetics Paradigm Fund vs. Lazard International Equity
Performance |
Timeline |
Kinetics Paradigm |
Lazard International |
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.Kinetics Paradigm vs. Multimanager Lifestyle Aggressive | Kinetics Paradigm vs. Alliancebernstein Global High | Kinetics Paradigm vs. Calvert High Yield | Kinetics Paradigm vs. Pace High Yield |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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