Correlation Between Artisan Developing and Lazard International

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

Diversification Opportunities for Artisan Developing and Lazard International

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Artisan and Lazard is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Developing World and Lazard International Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International and Artisan Developing 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 Artisan Developing World 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 Artisan Developing i.e., Artisan Developing and Lazard International go up and down completely randomly.

Pair Corralation between Artisan Developing and Lazard International

Assuming the 90 days horizon Artisan Developing World is expected to generate 1.17 times more return on investment than Lazard International. However, Artisan Developing is 1.17 times more volatile than Lazard International Quality. It trades about 0.22 of its potential returns per unit of risk. Lazard International Quality is currently generating about -0.01 per unit of risk. If you would invest  2,152  in Artisan Developing World on September 6, 2024 and sell it today you would earn a total of  92.00  from holding Artisan Developing World or generate 4.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Artisan Developing World  vs.  Lazard International Quality

 Performance 
       Timeline  
Artisan Developing World 

Risk-Adjusted Performance

23 of 100

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

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Lazard International Quality are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lazard International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artisan Developing and Lazard International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Artisan Developing and Lazard International

The main advantage of trading using opposite Artisan Developing and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Developing 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 Artisan Developing World and Lazard International Quality 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.
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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