Correlation Between Lazard Global and Aberdeen Standard
Can any of the company-specific risk be diversified away by investing in both Lazard Global and Aberdeen Standard 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 Aberdeen Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Global Total and Aberdeen Standard Global, you can compare the effects of market volatilities on Lazard Global and Aberdeen Standard 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 Aberdeen Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Global and Aberdeen Standard.
Diversification Opportunities for Lazard Global and Aberdeen Standard
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lazard and Aberdeen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Global Total and Aberdeen Standard Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Standard Global 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 Total are associated (or correlated) with Aberdeen Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Standard Global has no effect on the direction of Lazard Global i.e., Lazard Global and Aberdeen Standard go up and down completely randomly.
Pair Corralation between Lazard Global and Aberdeen Standard
Considering the 90-day investment horizon Lazard Global Total is expected to generate 0.86 times more return on investment than Aberdeen Standard. However, Lazard Global Total is 1.17 times less risky than Aberdeen Standard. It trades about -0.22 of its potential returns per unit of risk. Aberdeen Standard Global is currently generating about -0.44 per unit of risk. If you would invest 1,670 in Lazard Global Total on September 23, 2024 and sell it today you would lose (69.00) from holding Lazard Global Total or give up 4.13% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lazard Global Total vs. Aberdeen Standard Global
Performance |
Timeline |
Lazard Global Total |
Aberdeen Standard Global |
Lazard Global and Aberdeen Standard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lazard Global and Aberdeen Standard
The main advantage of trading using opposite Lazard Global and Aberdeen Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Global position performs unexpectedly, Aberdeen Standard 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 Aberdeen Standard will offset losses from the drop in Aberdeen Standard's long position.Lazard Global vs. Cohen Steers Closed | Lazard Global vs. Abrdn Emerging Markets | Lazard Global vs. Allianzgi Equity Convertible | Lazard Global vs. Eaton Vance Senior |
Aberdeen Standard vs. Blackrock Muniyield Quality | Aberdeen Standard vs. PIMCO Access Income | Aberdeen Standard vs. Nuveen Municipal Credit | Aberdeen Standard vs. Western Asset Diversified |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |