Correlation Between Lazard Capital and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Lazard Capital and Horizon Active 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 Capital and Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard Capital Allocator and Horizon Active Asset, you can compare the effects of market volatilities on Lazard Capital and Horizon Active 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 Capital with a short position of Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard Capital and Horizon Active.
Diversification Opportunities for Lazard Capital and Horizon Active
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lazard and Horizon is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Capital Allocator and Horizon Active Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Asset and Lazard Capital 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 Lazard Capital Allocator are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Asset has no effect on the direction of Lazard Capital i.e., Lazard Capital and Horizon Active go up and down completely randomly.
Pair Corralation between Lazard Capital and Horizon Active
Assuming the 90 days horizon Lazard Capital is expected to generate 1.2 times less return on investment than Horizon Active. But when comparing it to its historical volatility, Lazard Capital Allocator is 1.3 times less risky than Horizon Active. It trades about 0.1 of its potential returns per unit of risk. Horizon Active Asset is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,468 in Horizon Active Asset on September 6, 2025 and sell it today you would earn a total of 65.00 from holding Horizon Active Asset or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard Capital Allocator vs. Horizon Active Asset
Performance |
| Timeline |
| Lazard Capital Allocator |
| Horizon Active Asset |
Lazard Capital and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard Capital and Horizon Active
The main advantage of trading using opposite Lazard Capital and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Capital position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Lazard Capital vs. Ultrasmall Cap Profund Ultrasmall Cap | Lazard Capital vs. Small Cap Value Profund | Lazard Capital vs. Ultramid Cap Profund Ultramid Cap | Lazard Capital vs. Mid Cap Value Profund |
| Horizon Active vs. Valic Company I | Horizon Active vs. American Funds Retirement | Horizon Active vs. Fidelity Managed Retirement | Horizon Active vs. T Rowe Price |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |