Correlation Between Barings Global and Lazard Real
Can any of the company-specific risk be diversified away by investing in both Barings Global and Lazard Real 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 Barings Global and Lazard Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Lazard Real Assets, you can compare the effects of market volatilities on Barings Global and Lazard Real 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 Barings Global with a short position of Lazard Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Lazard Real.
Diversification Opportunities for Barings Global and Lazard Real
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Lazard is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Lazard Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Real Assets and Barings Global 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 Barings Global Floating are associated (or correlated) with Lazard Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Real Assets has no effect on the direction of Barings Global i.e., Barings Global and Lazard Real go up and down completely randomly.
Pair Corralation between Barings Global and Lazard Real
Assuming the 90 days horizon Barings Global is expected to generate 8.71 times less return on investment than Lazard Real. But when comparing it to its historical volatility, Barings Global Floating is 3.16 times less risky than Lazard Real. It trades about 0.07 of its potential returns per unit of risk. Lazard Real Assets is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 981.00 in Lazard Real Assets on December 28, 2024 and sell it today you would earn a total of 61.00 from holding Lazard Real Assets or generate 6.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Barings Global Floating vs. Lazard Real Assets
Performance |
Timeline |
Barings Global Floating |
Lazard Real Assets |
Barings Global and Lazard Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barings Global and Lazard Real
The main advantage of trading using opposite Barings Global and Lazard Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Lazard Real 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 Real will offset losses from the drop in Lazard Real's long position.Barings Global vs. Gabelli Convertible And | Barings Global vs. Virtus Convertible | Barings Global vs. Calamos Dynamic Convertible | Barings Global vs. Advent Claymore Convertible |
Lazard Real vs. Virtus Multi Sector Short | Lazard Real vs. Alpine Ultra Short | Lazard Real vs. Fidelity Flex Servative | Lazard Real vs. Rbc Short Duration |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |