Correlation Between Lazard Global and Transamerica Emerging

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

Diversification Opportunities for Lazard Global and Transamerica Emerging

LazardTransamericaDiversified AwayLazardTransamericaDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lazard and Transamerica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Dynamic and Transamerica Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Emerging and Lazard 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 Lazard Global Dynamic are associated (or correlated) with Transamerica Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Emerging has no effect on the direction of Lazard Global i.e., Lazard Global and Transamerica Emerging go up and down completely randomly.

Pair Corralation between Lazard Global and Transamerica Emerging

If you would invest  794.00  in Transamerica Emerging Markets on September 13, 2024 and sell it today you would earn a total of  25.00  from holding Transamerica Emerging Markets or generate 3.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Lazard Global Dynamic  vs.  Transamerica Emerging Markets

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 24681012
JavaScript chart by amCharts 3.21.15GDMIX TEOJX
       Timeline  
Lazard Global Dynamic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Lazard Global Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Lazard Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec8.98.95
Transamerica Emerging 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Transamerica Emerging Markets are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Transamerica Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec88.18.28.38.48.58.6

Lazard Global and Transamerica Emerging Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.15GDMIX TEOJX
       Returns  

Pair Trading with Lazard Global and Transamerica Emerging

The main advantage of trading using opposite Lazard Global and Transamerica Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Transamerica 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 Transamerica Emerging will offset losses from the drop in Transamerica Emerging's long position.
The idea behind Lazard Global Dynamic and Transamerica 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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