Correlation Between International Small and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both International Small 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 International Small and Lazard Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Small Pany and Lazard Emerging Markets, you can compare the effects of market volatilities on International Small 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 International Small with a short position of Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Small and Lazard Emerging.
Diversification Opportunities for International Small and Lazard Emerging
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Lazard is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding International Small Pany 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 International Small 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 International Small Pany 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 International Small i.e., International Small and Lazard Emerging go up and down completely randomly.
Pair Corralation between International Small and Lazard Emerging
Assuming the 90 days horizon International Small is expected to generate 4.87 times less return on investment than Lazard Emerging. In addition to that, International Small is 1.05 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 0.25 per unit of volatility. If you would invest 2,302 in Lazard Emerging Markets on August 17, 2025 and sell it today you would earn a total of 251.00 from holding Lazard Emerging Markets or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Small Pany vs. Lazard Emerging Markets
Performance |
| Timeline |
| International Small Pany |
| Lazard Emerging Markets |
International Small and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Small and Lazard Emerging
The main advantage of trading using opposite International Small and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Small 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.| International Small vs. Lazard Emerging Markets | International Small vs. Dfa International Small | International Small vs. Us Targeted Value | International Small vs. Lazard Emerging Markets |
| Lazard Emerging vs. Lazard Emerging Markets | Lazard Emerging vs. Templeton Growth Fund | Lazard Emerging vs. Mfs Mid Cap | Lazard Emerging vs. International Small Pany |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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