Correlation Between Ftfa Franklin and Lazard Us

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

Diversification Opportunities for Ftfa Franklin and Lazard Us

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Ftfa and Lazard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Lazard Us go up and down completely randomly.

Pair Corralation between Ftfa Franklin and Lazard Us

Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.72 times more return on investment than Lazard Us. However, Ftfa Franklin Templeton Growth is 1.38 times less risky than Lazard Us. It trades about 0.18 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.11 per unit of risk. If you would invest  2,003  in Ftfa Franklin Templeton Growth on September 5, 2024 and sell it today you would earn a total of  125.00  from holding Ftfa Franklin Templeton Growth or generate 6.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Ftfa Franklin Templeton Growth  vs.  Lazard Strategic Equity

 Performance 
       Timeline  
Ftfa Franklin Templeton 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Ftfa Franklin Templeton Growth are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ftfa Franklin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Lazard Strategic Equity 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Strategic Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lazard Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ftfa Franklin and Lazard Us Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ftfa Franklin and Lazard Us

The main advantage of trading using opposite Ftfa Franklin and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Lazard Us 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 Us will offset losses from the drop in Lazard Us' long position.
The idea behind Ftfa Franklin Templeton Growth and Lazard Strategic 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios