Correlation Between Bank of America and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Bank of America and Lazard Equity 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 Bank of America and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Lazard Equity Centrated, you can compare the effects of market volatilities on Bank of America and Lazard Equity 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 Bank of America with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Lazard Equity.
Diversification Opportunities for Bank of America and Lazard Equity
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Lazard is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Lazard Equity Centrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Centrated and Bank of America 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 Bank of America are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Centrated has no effect on the direction of Bank of America i.e., Bank of America and Lazard Equity go up and down completely randomly.
Pair Corralation between Bank of America and Lazard Equity
Considering the 90-day investment horizon Bank of America is expected to generate 1.39 times more return on investment than Lazard Equity. However, Bank of America is 1.39 times more volatile than Lazard Equity Centrated. It trades about 0.1 of its potential returns per unit of risk. Lazard Equity Centrated is currently generating about 0.12 per unit of risk. If you would invest 3,938 in Bank of America on September 1, 2024 and sell it today you would earn a total of 813.00 from holding Bank of America or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bank of America vs. Lazard Equity Centrated
Performance |
| Timeline |
| Bank of America |
| Lazard Equity Centrated |
Bank of America and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Lazard Equity
The main advantage of trading using opposite Bank of America and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Lazard Equity 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 Equity will offset losses from the drop in Lazard Equity's long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Lazard Equity vs. Lazard Equity Centrated | Lazard Equity vs. Siit Dynamic Asset | Lazard Equity vs. Fidelity Advisor Large | Lazard Equity vs. Siit Large Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |