Correlation Between Blackstone and Lazard
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Lazard, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Lazard.
Diversification Opportunities for Blackstone and Lazard
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Lazard is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Lazard go up and down completely randomly.
Pair Corralation between Blackstone and Lazard
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.45 times more return on investment than Lazard. However, Blackstone Group is 2.23 times less risky than Lazard. It trades about 0.45 of its potential returns per unit of risk. Lazard is currently generating about 0.17 per unit of risk. If you would invest 16,997 in Blackstone Group on August 27, 2024 and sell it today you would earn a total of 2,908 from holding Blackstone Group or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Lazard
Performance |
| Timeline |
| Blackstone Group |
| Lazard |
Blackstone and Lazard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Lazard
The main advantage of trading using opposite Blackstone and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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