Correlation Between AllianceBernstein and Lazard
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Lazard 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 AllianceBernstein and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AllianceBernstein Holding LP and Lazard, you can compare the effects of market volatilities on AllianceBernstein and Lazard 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 AllianceBernstein with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Lazard.
Diversification Opportunities for AllianceBernstein and Lazard
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and Lazard is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and AllianceBernstein 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 AllianceBernstein Holding LP are associated (or correlated) with Lazard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Lazard go up and down completely randomly.
Pair Corralation between AllianceBernstein and Lazard
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Lazard. But the stock apears to be less risky and, when comparing its historical volatility, AllianceBernstein Holding LP is 2.09 times less risky than Lazard. The stock trades about -0.13 of its potential returns per unit of risk. The Lazard is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 5,123 in Lazard on August 28, 2024 and sell it today you would earn a total of 843.00 from holding Lazard or generate 16.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Lazard
Performance |
| Timeline |
| AllianceBernstein |
| Lazard |
AllianceBernstein and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Lazard
The main advantage of trading using opposite AllianceBernstein and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Lazard 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 will offset losses from the drop in Lazard's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Lazard vs. PJT Partners | Lazard vs. Moelis Co | Lazard vs. Houlihan Lokey | Lazard vs. Piper Sandler Companies |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |