Correlation Between Lazard Funds and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Lazard Funds and Calvert Short 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 Funds and Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Lazard Funds and Calvert Short Duration, you can compare the effects of market volatilities on Lazard Funds and Calvert Short 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 Funds with a short position of Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Funds and Calvert Short.
Diversification Opportunities for Lazard Funds and Calvert Short
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lazard and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding The Lazard Funds and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration and Lazard Funds 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 The Lazard Funds are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Lazard Funds i.e., Lazard Funds and Calvert Short go up and down completely randomly.
Pair Corralation between Lazard Funds and Calvert Short
Assuming the 90 days horizon The Lazard Funds is expected to generate 4.01 times more return on investment than Calvert Short. However, Lazard Funds is 4.01 times more volatile than Calvert Short Duration. It trades about 0.33 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.1 per unit of risk. If you would invest 1,072 in The Lazard Funds on April 30, 2025 and sell it today you would earn a total of 109.00 from holding The Lazard Funds or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Lazard Funds vs. Calvert Short Duration
Performance |
| Timeline |
| Lazard Funds |
| Calvert Short Duration |
Lazard Funds and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Funds and Calvert Short
The main advantage of trading using opposite Lazard Funds and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Funds position performs unexpectedly, Calvert Short 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 Calvert Short will offset losses from the drop in Calvert Short's long position.| Lazard Funds vs. Financials Ultrasector Profund | Lazard Funds vs. Mesirow Financial Small | Lazard Funds vs. Goldman Sachs Financial | Lazard Funds vs. Icon Financial Fund |
| Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Income Fund | Calvert Short vs. Calvert Long Term Income |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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