Correlation Between Allianzgi Equity and Lazard Global

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

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

Diversification Opportunities for Allianzgi Equity and Lazard Global

0.71

Correlation Coefficient

Allianzgi Equity  Lazard Global

Poor diversification

The 3 months correlation between Allianzgi and Lazard is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity Convertible and Lazard Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Total and Allianzgi Equity 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 Allianzgi Equity Convertible 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 Total has no effect on the direction of Allianzgi Equity i.e., Allianzgi Equity and Lazard Global go up and down completely randomly.

Pair Corralation between Allianzgi Equity and Lazard Global

Considering the 90-day investment horizon Allianzgi Equity Convertible is expected to under-perform the Lazard Global. In addition to that, Allianzgi Equity is 1.46 times more volatile than Lazard Global Total. It trades about -0.11 of its total potential returns per unit of risk. Lazard Global Total is currently generating about -0.02 per unit of volatility. If you would invest  1,559  in Lazard Global Total on December 29, 2024 and sell it today you would lose (16.00) from holding Lazard Global Total or give up 1.03% of portfolio value over 90 days.

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

Allianzgi Equity Convertible  vs.  Lazard Global Total

Allianzgi Equity Con

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Equity Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest inconsistent performance, the Fund's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Lazard Global Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard Global Total has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong technical and fundamental indicators, Lazard Global is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Allianzgi Equity and Lazard Global

The main advantage of trading using opposite Allianzgi Equity and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity 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 Allianzgi Equity Convertible and Lazard Global Total 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.