Correlation Between Tortoise Energy and Lazard Funds

Can any of the company-specific risk be diversified away by investing in both Tortoise Energy and Lazard Funds 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 Tortoise Energy and Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tortoise Energy Independence and The Lazard Funds, you can compare the effects of market volatilities on Tortoise Energy and Lazard Funds 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 Tortoise Energy with a short position of Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tortoise Energy and Lazard Funds.

Diversification Opportunities for Tortoise Energy and Lazard Funds

0.87

Correlation Coefficient

Tortoise Energy  Lazard Funds

Very poor diversification

The 3 months correlation between Tortoise and Lazard is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Energy Independence and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds and Tortoise Energy 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 Tortoise Energy Independence are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Tortoise Energy i.e., Tortoise Energy and Lazard Funds go up and down completely randomly.

Pair Corralation between Tortoise Energy and Lazard Funds

Assuming the 90 days horizon Tortoise Energy Independence is expected to under-perform the Lazard Funds. In addition to that, Tortoise Energy is 2.26 times more volatile than The Lazard Funds. It trades about -0.16 of its total potential returns per unit of risk. The Lazard Funds is currently generating about 0.16 per unit of volatility. If you would invest  1,129  in The Lazard Funds on September 13, 2024 and sell it today you would earn a total of  20.00  from holding The Lazard Funds or generate 1.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Tortoise Energy Independence  vs.  The Lazard Funds

Tortoise Energy Inde

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Energy Independence are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tortoise Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Lazard Funds

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Lazard Funds are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Lazard Funds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Tortoise Energy and Lazard Funds

The main advantage of trading using opposite Tortoise Energy and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tortoise Energy position performs unexpectedly, Lazard Funds 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 Funds will offset losses from the drop in Lazard Funds' long position.

The idea behind Tortoise Energy Independence and The Lazard Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.