Correlation Between Lazard International and Schwab Fundamental
Can any of the company-specific risk be diversified away by investing in both Lazard International and Schwab Fundamental 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 International and Schwab Fundamental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lazard International Strategic and Schwab Fundamental Small, you can compare the effects of market volatilities on Lazard International and Schwab Fundamental 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 International with a short position of Schwab Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazard International and Schwab Fundamental.
Diversification Opportunities for Lazard International and Schwab Fundamental
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lazard and Schwab is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lazard International Strategic and Schwab Fundamental Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Fundamental Small and Lazard International 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 International Strategic are associated (or correlated) with Schwab Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Fundamental Small has no effect on the direction of Lazard International i.e., Lazard International and Schwab Fundamental go up and down completely randomly.
Pair Corralation between Lazard International and Schwab Fundamental
Assuming the 90 days horizon Lazard International is expected to generate 3.21 times less return on investment than Schwab Fundamental. But when comparing it to its historical volatility, Lazard International Strategic is 1.61 times less risky than Schwab Fundamental. It trades about 0.01 of its potential returns per unit of risk. Schwab Fundamental Small is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,878 in Schwab Fundamental Small on August 28, 2025 and sell it today you would earn a total of 9.00 from holding Schwab Fundamental Small or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lazard International Strategic vs. Schwab Fundamental Small
Performance |
| Timeline |
| Lazard International |
| Schwab Fundamental Small |
Lazard International and Schwab Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lazard International and Schwab Fundamental
The main advantage of trading using opposite Lazard International and Schwab Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard International position performs unexpectedly, Schwab Fundamental 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 Schwab Fundamental will offset losses from the drop in Schwab Fundamental's long position.| Lazard International vs. Rationalrgn Hedged Equity | Lazard International vs. Abr Dynamic Blend | Lazard International vs. Qs Large Cap | Lazard International vs. Balanced Fund Retail |
| Schwab Fundamental vs. Goldman Sachs Financial | Schwab Fundamental vs. Vanguard Financials Index | Schwab Fundamental vs. Gabelli Global Financial | Schwab Fundamental vs. Fidelity Advisor Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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