Correlation Between Guggenheim Risk and Lazard Global

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

By analyzing existing cross correlation between Guggenheim Risk Managed and Lazard Global Listed, you can compare the effects of market volatilities on Guggenheim Risk and Lazard Global 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 Guggenheim Risk with a short position of Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Risk and Lazard Global.

Diversification Opportunities for Guggenheim Risk and Lazard Global

0.55

Correlation Coefficient

Guggenheim Risk  Lazard Global

Very weak diversification

The 3 months correlation between Guggenheim and Lazard is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Risk Managed and Lazard Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Listed and Guggenheim Risk 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 Guggenheim Risk Managed are associated (or correlated) with Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Listed has no effect on the direction of Guggenheim Risk i.e., Guggenheim Risk and Lazard Global go up and down completely randomly.

Pair Corralation between Guggenheim Risk and Lazard Global

Assuming the 90 days horizon Guggenheim Risk Managed is expected to under-perform the Lazard Global. In addition to that, Guggenheim Risk is 1.9 times more volatile than Lazard Global Listed. It trades about -0.11 of its total potential returns per unit of risk. Lazard Global Listed is currently generating about 0.02 per unit of volatility. If you would invest  1,620  in Lazard Global Listed on November 29, 2024 and sell it today you would earn a total of  10.00  from holding Lazard Global Listed or generate 0.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Guggenheim Risk Managed  vs.  Lazard Global Listed

Guggenheim Risk Managed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guggenheim Risk Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Lazard Global Listed

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard Global Listed are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Lazard Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guggenheim Risk and Lazard Global

The main advantage of trading using opposite Guggenheim Risk and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Risk position performs unexpectedly, Lazard Global 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 Global will offset losses from the drop in Lazard Global's long position.

The idea behind Guggenheim Risk Managed and Lazard Global Listed 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.