Correlation Between Lazard Funds and Short Oil
Can any of the company-specific risk be diversified away by investing in both Lazard Funds and Short Oil 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 Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Lazard Funds and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Funds and Short Oil.
Diversification Opportunities for Lazard Funds and Short Oil
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lazard and Short is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Lazard Funds and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Lazard Funds i.e., Lazard Funds and Short Oil go up and down completely randomly.
Pair Corralation between Lazard Funds and Short Oil
Assuming the 90 days horizon The Lazard Funds is expected to generate 0.5 times more return on investment than Short Oil. However, The Lazard Funds is 2.0 times less risky than Short Oil. It trades about 0.17 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.09 per unit of risk. If you would invest 1,111 in The Lazard Funds on May 27, 2025 and sell it today you would earn a total of 62.00 from holding The Lazard Funds or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Lazard Funds vs. Short Oil Gas
Performance |
| Timeline |
| Lazard Funds |
| Short Oil Gas |
Lazard Funds and Short Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Funds and Short Oil
The main advantage of trading using opposite Lazard Funds and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Funds position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.| Lazard Funds vs. Guidemark Large Cap | Lazard Funds vs. Rational Strategic Allocation | Lazard Funds vs. T Rowe Price | Lazard Funds vs. Growth Allocation Fund |
| Short Oil vs. Multi Manager High Yield | Short Oil vs. Prudential High Yield | Short Oil vs. Payden High Income | Short Oil vs. Pioneer High Yield |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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