Correlation Between Citigroup and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Lazard Equity Franchise, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Lazard Equity.
Diversification Opportunities for Citigroup and Lazard Equity
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Lazard is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise and Citigroup 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 Citigroup 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 Franchise has no effect on the direction of Citigroup i.e., Citigroup and Lazard Equity go up and down completely randomly.
Pair Corralation between Citigroup and Lazard Equity
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.8 times more return on investment than Lazard Equity. However, Citigroup is 2.8 times more volatile than Lazard Equity Franchise. It trades about 0.13 of its potential returns per unit of risk. Lazard Equity Franchise is currently generating about -0.03 per unit of risk. If you would invest 6,092 in Citigroup on September 3, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Lazard Equity Franchise
Performance |
| Timeline |
| Citigroup |
| Lazard Equity Franchise |
Citigroup and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Lazard Equity
The main advantage of trading using opposite Citigroup and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Lazard Equity vs. Ab Bond Inflation | Lazard Equity vs. Guidepath Managed Futures | Lazard Equity vs. Western Asset Inflation | Lazard Equity vs. Oklahoma College Savings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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