Correlation Between Rbb Fund and Lazard Emerging

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

By analyzing existing cross correlation between Rbb Fund Trust and Lazard Emerging Markets, you can compare the effects of market volatilities on Rbb Fund and Lazard 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 Rbb Fund with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Lazard Emerging.

Diversification Opportunities for Rbb Fund and Lazard Emerging

0.5

Correlation Coefficient

Rbb Fund  Lazard Emerging

Very weak diversification

The 3 months correlation between Rbb and Lazard is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund Trust and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets and Rbb Fund 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 Rbb Fund Trust are associated (or correlated) with Lazard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of Rbb Fund i.e., Rbb Fund and Lazard Emerging go up and down completely randomly.

Pair Corralation between Rbb Fund and Lazard Emerging

Assuming the 90 days horizon Rbb Fund Trust is expected to under-perform the Lazard Emerging. In addition to that, Rbb Fund is 2.21 times more volatile than Lazard Emerging Markets. It trades about -0.05 of its total potential returns per unit of risk. Lazard Emerging Markets is currently generating about -0.05 per unit of volatility. If you would invest  1,912  in Lazard Emerging Markets on October 25, 2024 and sell it today you would lose (47.00) from holding Lazard Emerging Markets or give up 2.46% of portfolio value over 90 days.

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

Rbb Fund Trust  vs.  Lazard Emerging Markets

Rbb Fund Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rbb Fund Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Rbb Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lazard Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lazard Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Lazard Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Rbb Fund and Lazard Emerging

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

The idea behind Rbb Fund Trust and Lazard 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.