Correlation Between ATLANTIC PETROLPF and Lazard Emerging

Can any of the company-specific risk be diversified away by investing in both ATLANTIC PETROLPF 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 ATLANTIC PETROLPF and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATLANTIC PETROLPF DK and Lazard Emerging Markets, you can compare the effects of market volatilities on ATLANTIC PETROLPF 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 ATLANTIC PETROLPF with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATLANTIC PETROLPF and Lazard Emerging.

Diversification Opportunities for ATLANTIC PETROLPF and Lazard Emerging

0.23

Correlation Coefficient

ATLANTIC PETROLPF  Lazard Emerging

Modest diversification

The 3 months correlation between ATLANTIC and LAZARD is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ATLANTIC PETROLPF DK 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 ATLANTIC PETROLPF 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 ATLANTIC PETROLPF DK 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 ATLANTIC PETROLPF i.e., ATLANTIC PETROLPF and Lazard Emerging go up and down completely randomly.

Pair Corralation between ATLANTIC PETROLPF and Lazard Emerging

Assuming the 90 days horizon ATLANTIC PETROLPF DK is expected to generate 7.87 times more return on investment than Lazard Emerging. However, ATLANTIC PETROLPF is 7.87 times more volatile than Lazard Emerging Markets. It trades about 0.09 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest  16.00  in ATLANTIC PETROLPF DK on December 30, 2024 and sell it today you would earn a total of  5.00  from holding ATLANTIC PETROLPF DK or generate 31.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

ATLANTIC PETROLPF DK  vs.  Lazard Emerging Markets

ATLANTIC PETROLPF

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATLANTIC PETROLPF DK are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATLANTIC PETROLPF reported solid returns over the last few months and may actually be approaching a breakup point.

Lazard Emerging Markets

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Emerging Markets are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lazard Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ATLANTIC PETROLPF and Lazard Emerging

The main advantage of trading using opposite ATLANTIC PETROLPF and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATLANTIC PETROLPF 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.

The idea behind ATLANTIC PETROLPF DK and Lazard Emerging Markets 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.